Question: 1 3 - 2 . Optimal capital budget Marble Construction estimates that its WACC is 1 0 percent if equity comes from retained earnings. However,

13-2. Optimal capital budget Marble Construction estimates that its WACC is 10 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 10.8 percent. The company believes that it will exhaust its retained earnings at $2,500,000 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:
\table[[Project,Size,IRR],[A,$1,000,000,20%
 13-2. Optimal capital budget Marble Construction estimates that its WACC is

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