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7) On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest

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7) On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $30 million in new projects. The firm's present market value capital structure, shown here, is considered to be optimal. There is no short-term debt. New bonds will have an 8% coupon rate, and will be sold at par. The common stock is currently selling at $30 per share. The stockholders' required rate of return is 12%. A.) In order to maintain the present capital structure, how much of the new investment must be financed by common equity? B.) Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, what will happen to the WACC? Explain. (No numbers/calculations are required to answer this question)

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