WACC Estimation On January 1, the total market value of the Tysseland 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.

C= Select II,II,III,IV, V

expected dividend is $1.20, so the dividend yield is 51.20/$30=4%.) The marginal tax rate is 25%. $ I. rs will decrease and the WACC will increase due to the flotation costs of new equity. II. rs and the WACC will not be affected by flotation costs of new equity. III. rs and the WACC will increase due to the flotation costs of new equity. IV. rs and the WACC will decrease due to the flotation costs of new equilty. V. rs will increase and the WACC will decrease due to the flotation costs of new equity