On January 1 , the total market value of the Tysseland Company was $60 million. During the year, the company plans to roise ond invect $20 millian in new. projects, The firm's present market value capital structure, here bolow, is considered to be optimal. There is no shart-term debt. New bonds will have an 89 coupon rate, and they will be sold at por. common stock is currently selling at $30 a shore. The stockholdern' repuared rate of refim is petimated to be 12%, consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (The noxt expected ofvidend is s1. 20, co the dividend yleld is 51.20/4304%.) The marginal tax rate is 25%5. a. In order to maintain the present copital structure, how much of the new invotinent must be financed by common eguity? Rosund your antwer to the risuresit dollar. S b. Assuming there is sufficient cash flow for Tyseland to maintan itn taroot cabital afructure without isoulme additional ebares of nquity, what is ite Whce? Roand vour aniver to two decimal places. c. Suppose now that there is not enough internal cash flow and the firm must kswe new shares of stock. Qualitatively sipenking, whas will happen to the WhCC? No numbers are required to ancwer this quebtion. I. is will increase and the WACC will decrease due to the flotation coste of new equity. II. Is wilt decreape and the WAcC will increase due to the flotation costs of new equity. III. Fs and the WACC will not be atfected by flotation costs of new equity; IV. Is and the WACC will increase due to the flotation costs of new equity. V. rs and the Wace will decrease due to the flotation costs of new equity