Kuhn Co. is considering a new project that will require an initial investment of $45 million. It has a target capital st

[answerhappygod]

Kuhn Co. is considering a new project that will require an
initial investment of $45 million. It has a target capital
structure of 35% debt, 2% preferred stock, and 63% 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 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 per share.
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. Flotation costs will represent 8% of the funds raised by
issuing new common stock. The company is projected to grow at a
constant rate of 9.2%, 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.)