Question: could use some help on this! thank you! Video Excel Online Structured Activity: WACC Estimation On January 1, the total market value of the Tyssland

could use some help on this! thank you!
could use some help on this! thank you! Video Excel Online Structured
Activity: WACC Estimation On January 1, the total market value of the

Video Excel Online Structured Activity: WACC Estimation On January 1, the total market value of the Tyssland Company was $60 million. During the year, the company plapis to raise and lovest $15 million in new projects. The firm's present market value capital structure shown below, is considered to be optimal. Assume that there is a short term debt Debt Common equity Total capital $30,000,000 30,000,000 $60,000,000 New bonds will have an 7% 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%, comisting of a dividend yield of 4% and an expected content growth rate of 8%. (The next expected dividend Is $1.20, so 51.20/530-4.) The marginal corporate tax rate is 40 The data has been collected in the Microsoft Excel Online file below Open the spreadsheet and perform the required analysis to answer the question below X WWF Open spreadsheet a. In order to maintain the present capital structure, how much of the new Investment must be financed by common equity Enter your answer in line Activity: WACC Open spreadsheet a. In order to maintain the present capital structure, how much of the new Investment must be financed by common equity Enter your answer in dollars. For example, 512 million should be entered as $1200000. Round your answer to the nearest doltar Do not round intermediate calculations 5 b. Assuming there is sufficient cash flow such that Tweland can maintain its target capital structure without issuing additional shores of equity what is its WACC? Round your answer to two decimal places. Do not round intermediate calculation 1 c. Suppone now that there is not enough internal emh how and the tem must be new shares of stock. Qualitatively speaking, what will open to the WACC? 1. T. and the WACC will increase due to the flotation costs of new equity 11., and the WACC will decrease due to the rotation costs of new equity III. 1, will increase and the WACC will decrease due to the rotation costs of new equity IV. I will decrease and the WACC will increase due to the flotation costs of new equity V. r. and the WACC will not be affected by flotation costs of new equity Next

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