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Marble Construction estimates that its WACC is 12% if equity comes from retained earnings. However, if the company issues new stock to raise new equity,
Marble Construction estimates that its WACC is 12% 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 12.9%. The company believes that it will exhaust its retained earnings at $2,800,000 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
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