Question: State and explain the concept (criterion) that can be used to determine the amount of new capital that can be raised before there is an

  1. State and explain the concept (criterion) that can be used to determine the amount of new capital that can be raised before there is an increase in the firm's weighted average cost of capital (WACC)

  1. What is the concept that explains why a cost must be assigned to retained earnings? Discuss.

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