Kuhn $Co.$ is considering a new project that will require an initial investment of $$20$ million. It has a target capital structure of $58\%$ debt, $6\%$ preferred

stock, and $36\%$ common equity. Kuhn has noncallable bonds outstanding that mature in five years with a face value of $$1,000,$ an annual coupon rate

of $10\%,$ and a market price of $$1,050\mathrm{.}76.$ The yield on the company's current bonds is a good approximation of the yield on any new bonds that it

issues. The company can sell shares of preferred stock that pay an annual dividend of $$8$ at a price of $$95\mathrm{.}70$ per share.

Kuhn does not have any retained earnings available to finance this project, so the firm will have to issue new common stock to help fund it$.$ Its

common stock is currently selling for $$22\mathrm{.}35$ per share, and it is expected to pay a dividend of $$1\mathrm{.}36$ at the end of next year. Flotion costs will

represent $8\%$ of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of $8\mathrm{.}7\%,$ and they face a tax

rate of $25\%.$ What will be the WACC for this project? $11\mathrm{.}76\%,($Note: Round your intermediate calculations to two decimal places.$)$