Kuhn Co. is considering a new prolect that will require an initial investment of $20 milion. It has a tarpet capital structure of 35% debt, 2% preferred stock, and 63% common cquty. Kuhn has noncallable bonds outstanding that mature in 15 vears with a face value of $1,000, an annual coupen rate of 11%, and a market price of $1555.38. The vield on the company's current bonds is a good approximatien of the yield on any new bonds that it issues. The company can sell shares of preferred stock that pay an anaual dividend of $8 at a price of $92.25 per share. Kuhn does not have any retained earnings avallable to finance this project, so the firm wit have to isste new common stock to help fund, it. Its common stock is currently selling for $22.35 per share, and it is expected to pay a dividend of $1.36 at the end of next year. Flotation costr will represent 8% of the funds raised by issuing new common stock. The conpary is prolected to crow at a constant rate of 9.2%, and they facesa tax rate of 25%. What will be the Wacc for this project? (Note: Round your Intermediate calculations to two decirnal places.) that will require an initial investment of $20 mill has noncallable bonds outstanding that mature