If the cost of new common equity is higher than the cost of internal equity, why would a firm choose to issue new common stock?

Why is it important to use a firms MCC and not a firms initial WACC to evaluate investments

?Calculate the AT kd, ks, knfor the following information:

Loan rates for this firm = 9%

Growth rate of dividends = 4%

Tax rate=30%

Common Dividends at t1= $ 4.00

Price of Common Stock= $35.00

Flotation costs= 6%

Your firms ks is 10%, the cost of debt is 6% before taxes, and the tax rate is 40%.Given the followingbalance sheet, calculate the firms after tax WACC:

Total assets=$25,000

Total debt= 15,000

Total equity= 10,000