The target capital structure of the Tysseland Company consists of $30 million in debt and $30 million in common equity.  During the year, the company plans to raise and invest $10 million in new projects.

New bonds will have a 7% coupon rate, and they will be sold at par.  Common stock is currently selling at $30 a share.  The next expected annual dividend is $1.20, and the annual growth rate in dividends of 8% is expected to continue forever.  The marginal corporate tax rate is 30%.

Assuming there is sufficient cash flow such that Tysseland can maintain its target capital structure without issuing additional shares of equity, what is its 

A)   After -tax cost of debt?

B)   Cost of equity?

C)   WACC?

D)   Now assume that Tysseland issues new shares and floatation costs are 10%. What is the new WACC?