Question: stuck on the processes of second and third question Tumbull Co. has a target capital structure of 59% debt, 6% preferred stodc, and 36% common

stuck on the processes of second and third question  stuck on the processes of second and third question Tumbull Co.
has a target capital structure of 59% debt, 6% preferred stodc, and
36% common equity. It has a beforetax cost of debt of 8.2%,
and its cost of preferred stock is 9.3%. If Turnbull can raise

Tumbull Co. has a target capital structure of 59% debt, 6% preferred stodc, and 36% common equity. It has a beforetax cost of debt of 8.2%, and its cost of preferred stock is 9.3%. If Turnbull can raise all of its equity capital from retained eamings, its cost of common equity will be 12.4%. Howevec, if it is necescary to raste new common equity, it will carry a cost of 14.2%. If its current tax rate is 40%, hiow much higher will Tumbull's weighted average colt of cabtal (wacc) be \&f a has to raise additional comnon equity capital by issuing new common stock initead of raising the funds through retained earnings? (Note: Mlound your interimediate caloulabons to two decimal placest) 0.58% 0.64% 0.74% 0.80% Tumbuil Co, is considering a project that requires an inisal investment of 4570,000 . The firm we raise the 5570,000 in capital by itauing $230,000 of debt at a before tax coit of 9.64,920,000 of praferred atock at a cost of 10.74, and 1320,000 of equer at a cote of 13595 . The firm faces a tax rate of 405 . What will be the wacc for tha broject? (Note: found you icternediste calculations to thee decimal places.) equity capital by issuing new common steck instead of raising the funds through retained eamings? (Note: Round your iteditional common to two decimal places.) 0.58% 0.64% 0.74% 0.80% Turnbull Co. is considering a project that requires an initial investment of 4570,000 . The firm will raise the $570,000 in capital by issuing $230,000 of debt at a before tax cost of 9.6%,$20,000 of preferred stock at a cost of 10,7%, and $320,000 of equity at a cost of 13.5%. The firm faces a tax rate of 40%. What will be the WACC for this project? decimal places.) Consider the case of Kuhn Co. Kuhn Co. is considering a new project that will require an initial investment of $20 million. It has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. Kuhn has noncallable bonds outstanding that mature in five years with a face value of $1,000, an annual coupon rate of 10%, and a market price of $1,050.76. The vield on the company's current bonds is a pood approximation of the vield on any new bonds that it issues. The company can sell shares of preferred stock that pay an annual dividend of 58 at a price of $95.70 per share. Kuhn does not have any retained eamings available to finance this project, so the firm will have to issue new common stock to heip fund it. its common stock is currently selling for $22.35 per share, and it is expected to pay a dividend of $2.78 at thidend of next yeac. Flotation conti will represent 8% of the funds raised by issliing new common stock. The company is projected to grow at a constant rate of 9.2%, and they face a tax rate of 40%. What will be the WACC for this project? (Note: Round your intermediate calculations to two decimal places.). be the WACC for this project? (Note: that will require an initial investment of $20 million. It h quity. Kuhn has noncallable bonds outstanding that matu

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