On January 1, the total market value of the Yeland Company was 60 milion. During the year, the company plan to rate and invest $30 million in new projects. The firm's present maru value capital structure, here below, is considered to be optimal. There is no short-term dett. Det $30,000,000 Common equity 30,000,000 Total capital 560,000,000 New bonds will have an 8% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a shorn. The stockholder required rate of return is estmated to be 12 consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (The next expected dividend a $1.20, co the dividend yield a $1.20/$30 - 4.) The marginal tax rates 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 25% b. Assuming there is sufficient cash flow for Tvoseland to maintain its target capital structure without wing additional shares of eat, what is its WACC Round your answer to two Suppose now that there is not enough internal cash flow and the firm must ime new shares of stock. Qualitative speaking, what will happen to the WACC Morumbers are required 1. Will increase and the WACC will decrease due to the flotation costs of new equity II. T will decrease and the WACC will increase due to the flotation costs of new equity II., and the WACC will not be afected by flotation costs of new equity IV. and the WACC will increase due to the flotation est of new equity V. and the WACC will decrease due to the flotation costs of new ety