a. 6.53%

b.7.25%

c. 6.89%

d. 7.61%

Consider the case of Kuhn Co. Kuhn Co. is considering a new project that will require an initial investment of $45 million. It has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. Kuhn has noncallable bonds outstanding that mature in 15 years with a face value of $1,000, an annual coupon rate of 11%, and a market price of $1,55 yield on the company's current bonds is a good approximation of the yield on any new bonds that it issues. The company can sell shares of preferred stock that pay an annual dividend of $8 at a price of $92.25 5.38. The per share Kuhn does not have any retained earnings available to finance this project, so the firm will have to iss comm dividend of $1.36 at the end of next year. Flotation costs will represent 3% of the fund common stock. The company is projected to grow at a constant rate of 9.2%, and they face a tax rate of 40%. ue new on stock to help fund it. Its common stock is currently selling for $33.35 per share, and it is expected to pay a s raised by issuing new Determine what Kuhn Company's WACC will be for this project