Market value of debt $30,000,000 Market value of common equity 30,000,000 Total market value $60,000,000 New project investment $10,000,000 Coupon rate of of par value bonds 6.00% Price of common stock. $30.00 Required return of common stock, r 12.00% Dividend yield, D/Po 4.00% = Constant growth rate, g 8.00% 1 Tax rate 35.00% 5 5 Amount of new investment financed with common equity $5,000,000 WACC, assuming no new common equity + =B4/B5 B7 Formulas #N/A b. Assuming there is sufficient cash flow 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. 9