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see second picture for the options of the answer, thanks! Kuhn Co. is considering a new project that wil require an initibhirivestinent of $20 million.
see second picture for the options of the answer, thanks!
Kuhn Co. is considering a new project that wil require an initibhirivestinent of $20 million. It has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. Kuhn has noncaliable bonds outstanding that mature in five years with a face value of s1, 000, an annual coupon rate of 10%, and a market price of $1,050.76. The yieid 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 $9 at a price of $92.25 per share. Kuhn does not have any retained eamings 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 $33.35 per share, and it is nxpected to pay a dividend of 52.78 at the end of next year, Flotation costs wie represent 3% of the funds raised by ksuing new common stock. The company is projected to grow af a constant rate of 9.246 , and they face a tax rate of 40%. What wim be the WACC for this project? (Note: Round your Intermediate calculations to two decimal places.) Kuhn Co. is considering a new project that will require an initial investment of $20 million. It has a target capital structiure of 5806 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 annuat coupon rate of 10%, and a market price of $1,050.76. The yleld of 9.52% any's current bonds is a good approximation of the yleld on any new bonds that it issues. The company can sell shares of preferred stoci Kuhn does not have ary retained earnings avaliable to 8.02% is project, so the firm will have to issue new common stock to help fund it. Its common stock is currently selling for $33.35 per shar 10.02%. expected to pay a dividend of $2.78 at the end of next year Flotation costs win represent 3\% of the funds raised by issuing new com 10.02% the company is projected to grow at a constant rate of 9.206 , and they face a tax rate of 40\%. What will be the WACC for this project? (Note: Round your intermediate calculations to two decimal piaces.) Step by Step Solution
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