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only one small question, help plz c. If the company need issue common stock to the public at current market price and the flotation cost
only one small question, help plz
c. If the company need issue common stock to the public at current market price and the flotation cost is 10% of the issue's gross proceeds, what is its WACC? (4 marks) 5. On January 1 , the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $30 million in new projects. The firm's present market value capital structure, shown 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 marginal tax rate is 40% Step by Step Solution
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