Question: explain please Turnbull Co. is considering a project that requires an initial investment of $570,000. The form will raise the $570,000 in capital by issuing
Turnbull Co. is considering a project that requires an initial investment of $570,000. The form will raise the $570,000 in capital by issuing $230,000 of debt at a before tax cost of 10.2%, $20,000 of preferred stock at a cost of 11.4%, and $320,000 of equity at a cost of 14.3%. The firm faces a tax rate of 25% What will be the WACC for this project? 12.66% (Note: Round your intermediate calculations to three decimal places.) Consider the case of Kuhn Co. 12.66% 7.484 8.63% Kuhn Co. is considering a new project that will require stock, and 63% common equity. Kuhn has noncallable of 11%, and a market price of $1555.38. The vield on issues. The company can sell shares of preferred stoc vestment of $20 million. It has a target capital structure of 35% debt, 2% preferred standing that mature in 15 years with a face value of $1,000, an annual coupon rate ny's current bonds is a good approximation of the weld on any new bonds that In annual dividend of $8 at a price of $92.25 per share 11.51% Kuhn does not have any retained earnings available to finance this project, so the firm will have to issue new common stock to help fund it. Its common stock is currently selling for $33.35 per share, and it is expected to pay a dividend of $1.36 at the end of next year rotation costs will represent 3% of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of 8.74, and they face a tax rate of 25% What will be the WACC for this project (Note: Round your intermediate calculations to two decimal places) in Finance Grade it Now Save & Continue
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