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Turnbull Co. is considering a project that requires an initial investment of $270,000. The firm will raise the $270,000 in the capital by issuing $100,000
Turnbull Co. is considering a project that requires an initial investment of $270,000. The firm will raise the $270,000 in the capital by issuing $100,000 of debt at a before-tax cost of 10.2%, $30,000 of preferred stock at a cost of 11.4%, and $140,000 of equity at a cost of 14.3%. 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.)
8.64%
11.52%
8.06%
7.49%
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