Turnbull 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 $11\mathrm{.}1\%,$ and its cost of preferred stock is $12\mathrm{.}2\%.$ If Turnbull can raise all of its equity capital from retained earnings, its cost of common equity will be $14\mathrm{.}7\%.$ However, if it is necessary to raise new common equity, it will carry a cost of $16\mathrm{.}8\%.$ If its current tax rate is $40\%,$ how much higher will Turnbull'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: Do not round your intermediate calculations.$)1\mathrm{.}23\%,1\mathrm{.}44\%,1\mathrm{.}28\%1\mathrm{.}07\%$

Turnbull Co$.$ is considering a project that requires an initial investment of $$1,708,000.$ The firm will raise the $$1,708,000$ in capital by issuing $$750,000$ of debt at a before$-$tax cost of $8\mathrm{.}7\%,$ $$78,000$ of preferred stock at a cost of $9\mathrm{.}9\%,$ and $$880,000$ of equity at a cost of $13\mathrm{.}2\%.$ The firm faces a tax rate of $40\%.$ What will be the WACC for this project? $($Note: Do not round intermediate calculations.$)$