Question: Recompute the weighted average cost of capital based on using new common stock in the capital structure. Note: The weights remain the same, only common

Recompute the weighted average cost of capital based on using new common stock in the capital structure. Note: The weights remain the same, only common equity is now supplied by new common stock, rather than by retained earnings. After how much new financing will this increase in the cost of capital take place? Determine this by dividing retained earnings by the percent of common equity in the capital structure. Show your work on your assignment document.

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