On January 1, the total market value of the Treseland company was $50 mallon. During the voar, the company platis to raise and irvest $15 million in new projects. The firm's There is no short-teim debt. New bonds will have an Bs, coupen rate, and they will be sold at par. Comnoe stock is currently selling at $30 a share. The stockholders' required rate of return is estimated to of 8%. (The next expected dividend is $1.20,50 the dividend vidd is $1:20/$30=450 ) The marginal tax rate is 25%, a. In order to maintain the present capltal structure, how mudt of the new lavestmeot must be financed br common equity? Round your answer to the nearest dallar: $ 1. Is and the WACC will decrease due to the flotation costs of pow equity. II. tw wil increase and the WACC will decrease due to the flotation contr of aew nquity. 111. rs well decrease and the WACC wilt increase due to the flotation cods of new equity. IV. ri and the WACC wit eot be affected br flotation costs of new ecuity V. Ft and the wacc will ingeave due to the flotation costs of pent ecuity b/t30 - 4hin) The maroinal tax rate is 25%. the new investment must be financed by common equity? Round vour answer to the nearest dolyt. ew equity. dog costs of new equitr. ation costs of new eculty. evi eavity: ew equkt. On January 1, the total market value of the Treseland company was $50 mallon. During the voar, the company platis to raise and irvest $15 million in new projects. The firm's There is no short-teim debt. New bonds will have an Bs, coupen rate, and they will be sold at par. Comnoe stock is currently selling at $30 a share. The stockholders' required rate of return is estimated to of 8%. (The next expected dividend is $1.20,50 the dividend vidd is $1:20/$30=450 ) The marginal tax rate is 25%, a. In order to maintain the present capltal structure, how mudt of the new lavestmeot must be financed br common equity? Round your answer to the nearest dallar: $ 1. Is and the WACC will decrease due to the flotation costs of pow equity. II. tw wil increase and the WACC will decrease due to the flotation contr of aew nquity. 111. rs well decrease and the WACC wilt increase due to the flotation cods of new equity. IV. ri and the WACC wit eot be affected br flotation costs of new ecuity V. Ft and the wacc will ingeave due to the flotation costs of pent ecuity b/t30 - 4hin) The maroinal tax rate is 25%. the new investment must be financed by common equity? Round vour answer to the nearest dolyt. ew equity. dog costs of new equitr. ation costs of new eculty. evi eavity: ew equkt
