Question: 1 3 - 2 . Optimal capital budget Marble Construction estimates that its WACC is 1 0 percent if equity comes from retained earnings. However,
Optimal capital budget Marble Construction estimates that its WACC is percent if equity comes from retained earnings. However, if the company issues new stock to raise new equity, it estimates that its WACC will rise to percent. The company believes that it will exhaust its retained earnings at $ of capital due to the number of highly profitable projects available to the firm and its limited earnings. The company is considering the following seven investment projects:
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