Question: Each question will need be answered with 150 words. 1. Explain how we should go about computing the WACC for a project which uses both

Each question will need be answered with 150 words.

1. Explain how we should go about computing the WACC for a project which uses both retained earnings and a new equity issue?

2. Explain why we multiply the component cost of debt by the marginal tax rate,T_D, but don't do so for the component costs of equity or preferred stock.

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