On January 1 , the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $10 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 bonds will have a 9% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. The stockholders' required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (The next expected dividend is $1.20, so $1.20/$30=4%.) The marginal corporate tax rate is 35%. The data has been collected in the Microsoft Excel file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet 1. 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. Do not round intermediate calculations. Enter your answer in dollars and do not enter the dollar sign (\$). For example, $1:2 million should be entered as 1200000 . 2. 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. Note: Only numbers are allin in the field. Special symbols are not allowed. For example, if your calculated result is 12.34%, just enter 12.34. Question 3 2 pts 3. 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? r, and the WACC will decrease due to the flotation costs of new equity. rsand and WACC will not be affected by flotation costs of new equity. r, will increase and the WACC will decrease due to the flotation costs of new equity. r, will decrease and the WACC will increase due to the flotation costs of new equity