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please answer as soon as possible and ill leave a thumbs up if correct! The WACC is used as the discount rate to evaluate various

please answer as soon as possible and ill leave a thumbs up if correct!
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The WACC is used as the discount rate to evaluate various capital budgeting projects. However, it is important to realize that the waCC is an appropriate discount rate only for a project of average risk. Analyze the cost of capital situations of the following compariy cases, and answer the specinic questions that finance professionais need to address. Consider the case of Turnbull Co. Tumbuil Co. has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. It has a before-tax cost of debt of 8.2%, and II cost of preferred stock is 9.3%. If Tumbull can raise all of its equity capital from retained eamings, its cost of common equity will be 12.4%. However, if it is necessary to raise new common equity, it will carry a cost of 14.2%. If its current tax rate is 25%, how much higher will Tumbual's weighted average cost of capital (WACc) be if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings? (Note: Round your intermedlate calculations to two decimal places.) 1.15% 0.92% 1.10% 0.83% Turnbuil Co. is considering a project that requires an initial invertment of $270,000. The firm will raise the $270,000 in copital by issuing $100,000 of debt at a before-tax cost of 8.76, 330,000 of preferred stock at a cost of 9.95, and 5140,000 of equity at a cost of 13.28. The firm faces a tax rate of 25\%. What will be the walce for this project? If its current tax rate is 25%, how much higher will Tumbulis weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issulng new common stock instead of raising the funds through retained earnings? (Note: Round your intermediate calculations to two decimal places.) Turmbull Co. is considering a project that requires an initial investment of $270,000. The firm will raise the $270,000 in capital by issuing $100,000 of debt at a before-tax cost of 8.7%,$30,000 of preferred stock at a cost of 9.9%, and $140,000 of equity at a cost of 13,296 . The firm faces a tax rate of 25%. What will be the WACC for this project? (Note: Round your intermediate calculations to three decimal places.) Consider the case of Kuhn Co. issues. The company can sell shares of preferred 9.84% poy an annual dividend of $8 at a price of $95.70 per share. Kuhn does not have any retained earnings avallable to finance this project, so the firm will have to issue new common stock to help fund it. Its common stock is currently seting for $22.35 per share, and it is expected to pay a dividend of $2.78 at the end of next year. Fotation 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 be the Wacc for this project? (Note: Round your intermediate calcufations to two decimal places., If its current tax rate is 25%, how much higher will Tumbulis weighted average cost of capital (WACC) be if it has to ralse additional common equity capital by issuing new common stock instead of raising the funds through retained earnings? (Note: Round your intermediate calculations to two decimal places.) Tumbull Co, is considering a project that requires an initial investment of $270,000. The firm will raise the $270,000 in capital by issuing $100,000 of debt at a before-tax cost of 8.7%,530,000 of preferred stock at a cost of 9.9%, and $140,000 of equity at a cost of 13.2%. The firm faces a tax rate of 25\%. What will be the Wacc for this project? (Note: Round your intermediate calculations to three decimal places.) Consider the case of Kuhn Co. Kuhn Co. is considering a new project that will require an initial investment of $45 miltion. It has a target capital structure of 35% debt, 2% preferred stock, and 63% common equity. Kuhn has noncallable bonds outstanding that mature in 15 years with a foce value of $2,000, an annual coupon rate of 1145, and a market price of 51555.38, The yield on 14.33% ny's current bonds is a good approximation of the yield on any new bonds that it issues. The company can sell shares of preferred stoc. 15.92% on annual dividend of $8 at a price of $95.70 per share, Kutin does not have any retained eamings avalable to 18.31% is project, so the firm will have to issue new common stock to help fund it. its common stock is currentiy seling for $22.35 per shar 17.517 expected to pay a dividend of $2.76 at the end of next year. Flotation costs will represent 8% of the funds raised by issuing new comr. 17.5145 The company is projected to grow at a constant rate of 9.2%, and they face a tax rate of 25 \%. What win be the WAcc for this project? (Note: Round your intermediate calculotions to two decimal places.)

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