Question
A firm's WACC takes into consideration their capital structure and financing cost by source. However, there tends to be a recommended hierarchy with regard to
A firm's WACC takes into consideration their capital structure and financing cost by source. However, there tends to be a recommended hierarchy with regard to financing. That is, firms should first finance new projects using existing capital, then debt, then equity. Given that, why shouldn't firms just issue new stock whenever they need additional capital?
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Options Futures And Other Derivatives
Authors: John C. Hull
11th Edition
013693997X, 9780136939979
