The Ewert Exploration Company is considering two mutually exclusive plans for extracting oil on property for which it has mineral rights. Both plans call for the expenditure of $$11$ million to drill development wells. Under Plan A$,$ all the oil will be extracted in $1$ year, producing a cash flow at t $=1$ of $$11\mathrm{.}5$ million; under Plan B$,$ cash flows will be $$1\mathrm{.}5$ million per year for $20$ years.

What are the annual incremental cash flows that will be available to Ewert Exploration if it undertakes Plan B rather than Plan A$?($Hint: Subtract Plan A$\text{'}$s flows from B$\text{'}$s$.)$ Enter your answers in millions. For example, an answer of $$1\mathrm{.}23$ million should be entered as $1\mathrm{.}23,$ not $1,230,000.$ Round your answers to two decimal places. Use a minus sign to enter cash outflows, if any.

Year Incremental Cash Flow $($B $-$ A$)$

$1$ $

million

$2-20$ $

million

If the company accepts Plan A and then invests the extra cash generated at the end of Year $1,$ what rate of return $($reinvestment rate$)$ would cause the cash flows from reinvestment to equal the cash flows from Plan B$?$ Round your answer to two decimal places.

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

Debt $$30,000,000$

Common equity $30,000,000$

Total capital $$60,000,000$

New bonds will have an $8\%$ coupon rate, and they will be sold at par. Common stock is currently selling at $$30$ a share. The stockholders' required rate of return is estimated to be $12\%,$ consisting of a dividend yield of $4\%$ and an expected constant growth rate of $8\%.($The next expected dividend is $$1\mathrm{.}20,$ so the dividend yield is $$1\mathrm{.}20/$$$30=4\%.)$ The marginal tax rate is $25\%.$

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.

$