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I need help with these finance questions ASAP, please zoom if too small: Back to Assignment Attempts Keep the Highest / 8 3. Problem 12.05
I need help with these finance questions ASAP, please zoom if too small:
Back to Assignment Attempts Keep the Highest / 8 3. Problem 12.05 A-Z Click here to read the eBook: The Optimal Capital Budget OPTIMAL CAPITAL BUDGET Marble Construction estimates that its WACC is 10% 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 10.8%. The company believes that it will exhaust its retained earnings at $2,500,000 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 Size IRR bongo A $650,000 14.0% B 1,050,000 13.5 1,000,000 11.2 D 1,200,000 11.0 E 500,000 10.7 F 650,000 10.3 G 700,000 10.2 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? -Select- -Select- V V Project A Project B -Select- Project C Project D -Select- Project E Project F -Select- Project G -Select- What is the firm's optimal capital budget? Write out your answer completely. For example, 13 million should be entered as 13,000,000. $ -Select- V Grade it Now Save & Continue Continue without savingStep by Step Solution
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