Question: Open spreadsheet Round your answer to two decmal ploces. Do not round intermediate calculations. c. Suppose now that there is not enough intemal cash flow

 Open spreadsheet Round your answer to two decmal ploces. Do not
round intermediate calculations. c. Suppose now that there is not enough intemal

Open spreadsheet Round your answer to two decmal ploces. Do not round intermediate calculations. c. Suppose now that there is not enough intemal cash flow and the firm must issue new shares of stock, Qualtatively speakng, what wit haspen to ine wacer 1. 1, will decrease and the WACC will increase due to the flotation costs of new equity. 11. Fo and the WACC will not be affected by flotation costis of new equity. III. Fs and the WACC will increase due tio the flotation costs of new equity. rV. r5 and the WACC will decrease due to the flotation costs of new equity. V. Es wit increaset and the WACC wil decrease due to the fotation costs of new equity. WACC Equation \begin{tabular}{|l|r|} \hline Market value of debt & $30,000,000 \\ \hline Market value of common equity & 30,000,000 \\ \hline Total market value & $60,000,000 \\ \hline New project invoitment & $30,000,000 \\ \hline \end{tabular} Coupon rate of of par value bondi Price of commoe itock Requinod returt of comimon ituck, f4 Dividend yaild, Di,Pp Conatant growth rate, B Tax nate Anount of new investment financed with commoes equity WACC, asauning no new common equity \begin{tabular}{|c|c|c|} \hline il & C & D \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{$30,000,000}} \\ \hline & & \\ \hline \multicolumn{3}{|l|}{30,000,000} \\ \hline \multicolumn{3}{|l|}{560,000,000} \\ \hline \multicolumn{3}{|l|}{$30,000,000} \\ \hline \multicolumn{3}{|l|}{8.0096} \\ \hline \multicolumn{3}{|l|}{$3000} \\ \hline \multicolumn{3}{|l|}{12.00%} \\ \hline \multicolumn{3}{|l|}{4.00%6} \\ \hline \multicolumn{3}{|l|}{8004} \\ \hline \multirow[t]{4}{*}{4000%} & & = \\ \hline & & Formails \\ \hline & F & NN/A \\ \hline & 7 & WN/A \\ \hline \end{tabular}

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