ebook Video WACC Estimation on Sony 1, the total market value of the Tyssland Company was $60 milion. During the year, the company plans to raise and invest $20 million in new projects. The firm's present market value capital structure, bere below, is considered to be optimal. There is no short term det Debt $30,000,000 Common equity 30,000,000 Total capita $60,000,000 New bonds will have a coupon rate, and they will be sold at par conmon stock is currently selling at $30 share. The stockholders' required rate of return is estimated to be 12%, consisting of dividend yield of 4 and an expected constant growth rate of 3%. The next expected dividend is $1.20, so the dividend yield is $1.20/53049) 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 do S b. Assuming there is sufficient canh flow for Tysseland to maintain as tapet capital structure wthout issuing addition shares of equity, what is its WACC Round your answer to two decimal places C. Suppose now that there is not enough internal cash flow and the firm mustisse new shares of Mock. Qualitatively speaking, what will happen to the WACC No numbers are required to answer this question 1. and the WACC will not be affected by flotation costs of new equity 11. Is and the WACC will increase due to the rotation costs of new equity H. and the WACC wil decrease due to the flotation costs of new equity IV. will increase and the WACC will decrease due to the location costs of new equity V. Will decrease and the WACC will increase due to the rotation costs of new equity