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If Skye continues to use the same market - value capital structure, what is the firm's WACC assuming that ( 1 ) it uses only
If Skye continues to use the same marketvalue capital structure, what is the firm's WACC assuming that it uses only retained earnings for equity and if it expands so rapidly that it must issue new common stock? Hint: Use the market value capital structure excluding current liabilities to determine the weights. Also, use the simple average of the required values obtained under the two methods in calculating WACC.
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