$(15$ points$)$ The market value of the company is $$60$mil, and it plans to raise and invest

$$30$ mil in new projects. The current capital structure is optimal at $$30$ mil in debt, and

$$30$ mil in common stock.

New bonds will have an $8\%$ coupon rate, and they will be sold at par value. Its common

stock is currently selling at $$30$ per share, and the stockholders' required return is $12\%$

$($consisting of $4\%$ dividend yield with the expected dividend of $$1\mathrm{.}20$ per share, and $8\%$

growth$).$ The stated tax rate is $25\%.$

A$.$ In order to maintain the current capital structure, how much of the new investment

must be financed by common stock?

B$.$ Assuming there is sufficient cash flow to maintain the target capital structure without

issuing any additional share of common stock, calculate the overall cost of capital to

the company, WACC.