Kuhn company is considering a new project that will require an additional investment of 4 million. it has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. Kuhn has noncallable bonds outstanding that mature in 5 years with a face value of $1,000, an annual coupon rate of 10%, and a market price of $1050.76. the yield on the companys 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 and annual dividend if $9 at a price of $92.25 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 $22.35 per share, and it is expected to pay a dividend of $2.78 per share at the end of next year. flotation costs will represent 8% of the funds raised by issuing new common stock. the company is projected to grow at a constant rate of 9.2%, and they face a tax rate of 25%. what will thw WACc be for this project?

options are: 13.42%, 14.91%, 12.67%, 17.15%