constant growth rate of 8%. (The next expected dividend is $1.20, so the dividend yield is $1.20/$30=4%.) The marginal tax rate is 25%. a. In order to maintain the present capital structure, how much of the new investment must be financed by common equity? Round your answer to the nearest dollar. $ b. Assuming there is sufficient cash flow for Tysseland to maintain its target capital structure without issuing additional shares of equity, what is its WACC? Round your answer to two decimal places. % I. rs will increase and the WACC will decrease due to the flotation costs of new equity. II. rs will decrease and the WACC will increase due to the flotation costs of new equity. III. rs and the WACC will not be affected by flotation costs of new equity. IV. rs and the WACC will increase due to the flotation costs of new equity. V. rs and the WACC will decrease due to the flotation costs of new equity