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Tumbull Co. is considering a project that requires an inibalinvestment of $1,708,000. The firm will raise the $1,708,000 in capital by issulng $750,000 of debt at-a before-tax cost of 8.7%6,576,000 of preferred stock at a cost of 9.9%4, and $880,000 of equity at a cost of 13.2%6. The firm faces a tax rate of 25%. What will be the WhcC for this project? (Note: Round your intermediate calculations to three decimal places.) Consider the case of Kuhn Co. Kuhn Co: is considering a now project that will require an initiai investrnent of 54 million. It has a target capital structure of 5805 debt, 6% preferred shock, and 36% common equity. Kuhn hai noncallable bonds outstanding that mature in 15 years with a face vaiue of $1,000, an annual coupon rate. of 114 , and a market price of 51555.38 . The yiejd on the compsay's current bonds is a qood approkimation of the yield on any new bonds that it issues, The company can sell shares of preferred stock that pay an annual dividend of sa at a price of s92.25. per share. Whhn does not have amy retained eamings available to finance this project, so the firm will have to issue new common stock to help fund it. Its comiman stock is currentir selling for $33.35 per share, and it is expected to pay a dividend of $2.78 at the end of nent yeac flotatjen costs will sepresent aw of the fund raised by assuing new common stock, The company is projected to grow at a constant rate of 9.24 , and they face a tax rate of 25\%. What wil be the WAce for this project? (Note: Round your intermediate calculations to two decimal places.)

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