Problem 9-15 WACC Estimation On January 1, the total market value of the Tyssland Company was $60 million. During the year, the company plans to raise and invest $25 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. Debt Common equity Total capital $30,000,000 30,000,000 $60,000,000 New bonds will have an 9 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 $1.20, so the dividend yield is $1.20/530-4%.) The marginal tax rate is 3 In erder to maintain the present capital structure, how much of the new investment must be financed by common equly Enter your answer in dollars. For example, $1.2 million should be entered as $1200000. $ b. Assuming there is suficient cash flow for Teland to maintain its target capital structure without issuing additional terms of uit, what is its WACC Round your answer to two decimal places c. Suppose now that there is not enough internal cash flow and the firm must se new shares of stock. Ovdeling what will hapen to the WACC No numbers are required to aswer this question 1.1will increased the WACC will decrease due to the rotation costs of new equity II. , will decrease and the WACC will increased to the flotation costs of new it 111., and the WACC will not be affected by flotation costs of new equity IV. I, and the WACC will increase due to the Rotation costs of new V. and the WACC will decrease due to the flotation costs of new equity