Excel Online Structured Activity: WACC Estimation On January 1, the total market value of the Tysseland Company was 560 million. Duning the year, the company plans to raise and invest 515 million in new projects. The firm's present market value capital structure, shown below, is considered to be optimal. Assume that there is no short-term debt. New bond 5 will have an 10% coupon rate, and they will be sold 9 par. Common stock is currently selling at 530 a share. The stockholders' required rate of retum is estimated to be 12%, consisting of a dividend yieid of 4% and an expected constant growth rate of 8%. (The next expected dividend is $1.20,50$1.20/$30=4%.) The marginal corporate tax rate is 35%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet a. In order to maintain the present capital structure, how much of the new investment must be financed by common equity? Enter your answer in doliars. For example, $1.2 milion should be entered as $1200000. Round your answer to the nearest dollar: Do not round intermediate calculations. 5 b. Assuming there is sufficient cash fow such that Tysseland can maintain its target capital structure without issuing additional shares of equity, what is its WACC? Round your answer to two decimal places. Do not round intermediate calculations. c. Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speakng, what will happen to the WACC? 1. If and the waCc wil cecrease due to the flotation costs of new equity: II. rI will increase and the WACC will decrease due to the flotation costs of new equity. III. r2 wil decrease and the WACC will increase due to the fiotation costs of new equity. IV, r3 and the WACC will not be affected by flotation costs of new equity. V. ry and the WACC will increase due to the flotation costs of new equity