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, here below, is considered to be optimal. There is no short$-$term debt.

New bonds will have an $8\%$ 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

$$1\mathrm{.}20,$ so the dividend yield is $$\frac{1\mathrm{.}20}{\text{\$}}30=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 nearest dollar.

$

b$.$ Assuming there is sufficient cash flow for Tysseland to maintain its target capital structure without

issuing additional shares of equity, what is its WACC? Round your answer to two decimal places.

$\%$