Excel Online Structured Activityz WACC Estimation On January 1, the total market value of the Tysseland Company was $50 million. During the yeac, the company plans to raise and invest $25 million in new projects. The firm's presant market value capital structure, stiown below, is considered to be optimal. Assume that there is no short-term debt. New bonds will have an 10% coupon rate, and they will be sold at pat, Common stock is currently salling at $30 a share. The stockholders' required rate of return is entimated to be 12%, consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (The next expected dividend is $1.20,50 51.20/530=4%.) The marginal corporate tax rate is 30%. The data has been eollected in the Microsoft Excel Online file beleve, Open the spreadsheet and perform the required analysis to answer the question below. Openspreadsheet a. In order to maintain the present capital structure, how much of the neur investment must be financed by common equity? Enter your answer in dellars. For example, $1.2 million should be entered as $1200000. Found your answer to the nearest dollar; Do not round intermediate calculations. 5 b. Assuming there is sufficient eash fiow such that Tysseland can maintain its target capital atructure without issuing additional shares of equity, what is its WACC? Round your ansirer to twe decima! places. Do not round intermediate calculations. c. Suppose now that there is not enough intemal cash flow and the firm must asue new shares of stock, Qualitatively speaking, what wilk happen to the WACC? 1. r1 and the WACC will decreave due to the flotation costs of new equity. II. r4 will increase and the WACC will decrease due to the fotation conts of nevr equity: III. rh will decrease and the WACC will increase due to the flotation costs of new equity. rV. rL and the WACC will not be affected by fiotation costs of nevr equity V,ra and the WACC will increase due to the flotation cests of nevr equity