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 8.7%,$78,000 of preferred stock at a cost of 9.9%, and $850,000 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 decimol places.) Consider the case of Kuhn Co. Kuhn Co. is consadering a new project that will requirs 10.12% Ivestment of $20 million, It has a target capital structure of 35% debt, 2% preferred stock, and 63% common equity. Kuhn has noncallable 11.64% ptanding that mature in 15 years with a face value of \$1;000; an annual coupon rate of 11%, and a market price of $1555:38. The yield on 8.10n nys current bonds is a good approximation of the yield on any new bonds that it ispues. The company can sell shares of preferred stoc: 8.10% in annual dividend of 58 at a price of 592.25 per share. Kuhn does not have any retained earnings avoilable to finance this project, so the firm wall have to ssue new common stock to help fund it. Its cortimon stock is currently selling for $22.35 per share, and it is expected to pay a dividend of $2.78 at the.end of next yeac. Flotation costs wilf tepresent 6% of the funds rased by ssuing 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: Poimd your intermediate calculations to two decimal places.j) Turnbut 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 8.7%,$78,000 of preferred stock at a cost of 9.9%, and $880,000 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 Kuln Co. Kuhn Co. is consideting a new project that will require an initial investment of $20 million. it has a target capital structure of 35% stock, and 639 common equity. Kulun has noncallable bonds outstanding that mature in 15 years with a face value of $1,000, an anneial coupon rate of 11%, and a market price of 41555.38 . The Yield or? 16.73% my's current bonds is a good approximation of the yield on any new bonds that it Kube does not have any retained earnings available to 19.12% is project, so the firm will have to issue new common stock to help fund it, fts The company is projected to grow at a constant rate of 9.240 , and they face it tax rate of 25\% What wili be the WACC for this project? (Note: Round your intermediate calculations to two decirnal places.)
