Question: Marble Construction estimates that its WACC is 11% if equity comes from retained earnings. However, if the company issues new stock to raise new

Marble Construction estimates that its WACC is 11% if equity comes from

Marble Construction estimates that its WACC is 11% 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 11.6%. The company believes that it will exhaust its retained earnings at $2,400,000 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: Project A Size IRR $ 660,000 14.5% B 1,020,000 13.8 C 1,010,000 12.1 D 1,200,000 11.2 E 520,000 11.3 F 660,000 10.8 G 680,000 12.5 -Select- -Select- Assume that each of these projects is independent and that each is just as risky as the firm's existing assets. Which set of projects should be accepted? Project A Project B Project C -Select- Project D -Select- Project E -Select- Project F -Select- Project G -Select- What is the firm's optimal capital budget? Round your answer to the nearest dollar. $

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