On January 1 , the total market value of the Tysseland Company was 560 milion. Ouring the year, the company plans to raile and invest 515 million in new peojects. The firm's. pcesent market value capital structure, here below, is considered to be optimal, There is no short-term debt. New bonds wil have an 8% coupon rate, and they will be soid at par, Common stock is currently seling at 330 a share. The stocktholders' required rate of return is estimated to be 12\%. conststing of a dividend yield of 4% and an expected constant growth rate of 8%4. (The next expected dividend is $1.20, 50 the dividend yield is 51.20/530=4%.) 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 fiearest dollar. 5 b. Ascuming there is suthient cath flow for Tysseland to maintain its target capital structure without issuing additional shares of equity, what is its wacce flound your anshe: to two decimal places. c. Suppose now that theie is not enough intemal cash fiow and the firm must iswe new shares of stock: Qualitatively speoking, what will happen to the Wacci No fumbers are required to answer this question. 1. rx and the WACC will increase due to the flotation costs of new equity IT. fr and the WACC will decrease due to the fotation costs of new equity. III. r, witi increase and the WaCc will decrease due to the fotation costs of new equily. IV. F, will deorease and the WACC will increase due to the fotation costs of new equity. V. f, and the Wacc will not be affected by flotation costs of new equity