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 11.1%, and its cost of preferred stock is 12.2%. If Turnbull can raise all of its equity capital from retained earnings, its cost of common equity will be 14.7%. However, if it is necessary to raise new common equity, it will carry a cost of 16.8%. 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? 1.23% 1.07% 1.28% 0.91% Consider the case of Jordan Co. Jordan Co.'s CFO is trying to determine the company's WACC. He has determined that the company's before-tax cost of debt is 11.1%. The company currently has $230,000 of debt, and the CFO believes that the book value of the company's debt is a good approximation for the market value of the company's debt. The firm's cost of preferred stock is 12.2%, and the book value of preferred stock is $16,000. Its cost of equity is 14.7%, and the company currently has $210,000 of common equity on its balance sheet. The CFO has estimated that the firm's market value of preferred stock is $20,000, and the market value of its common equity is $320,000. Determine Jordan's WACC if it is subject to a tax rate of 40%