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show work please! Kuhn Co. has a target capital structure of 35% debt, 2% preferred stock, and 63% common equity. The tax rate is 40%

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Kuhn Co. has a target capital structure of 35% debt, 2% preferred stock, and 63% common equity. The tax rate is 40% The yield to maturity on the new bonds is 8.7%. Its cost of preferred stock is 8.67% and its cost of retained earnings is 20%. If the firm have to issue new common stock, its common stock is currently selling for $22.35 per share, and it just paid a dividend of $2.55. Floatation costs will represent 3% of the funds raised by issuing new common stock. The dividend is projected to grow at a constant rate of 9.2%. a) What is the cost of newly issued equity? b) What is the WACC of the firm to finance the project if the firm decides not to issue new equity

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