The market value of a company is $ 60 mln. During the year, the company plans to finance a new project. $ 30 mln. A firm

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The market value of a company is $ 60 mln. During the year, the company plans to finance a new project. $ 30 mln. A firm doesn’t have any short- term liabilities and has the following optimal capital structure:
Debt capital 30
Equity capital 30
Total 60
New issued bonds will have the cost of capital equal to 8%. Common shares today will have a price of 30$, but as the company will have expenses on issuing new shares, their final price will be equal to 27$. The dividend return is 4% and a stable growth rate is 8%. Retained earnings at the end of the year will be $ 3 mln. Taxation rate is 40%.
А. What part of the project financing can be accumulated using equity capital only? What part can be financed using only internal financial resources? How the rest part should be financed?
В. Calculate the cost of equity.
C. Calculate the WACC for two situations: 1) a company uses only retained earnings; 2) a company issues common shares.