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Marble Construction estimates that its WACC is 9% if equity comes from retained earnings. However, if the company issues new stock to raise new equity,
Marble Construction estimates that its WACC is 9% 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 9.9%. The company believes that it will exhaust its retained earnings at $2,600,000 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: 00 D Project Size IRR A $ 620,000 13.6% B 1,050,000 13.3 C 1,020,000 9.4 D 1,230,000 9.6 E 490,000 10.1 620,000 10.6 G 700,000 9.1 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- -Select- . Project A Project B Project C Project D Project E Project F Project G -Select- -Select- -Select- -Select- What is the firm's optimal capital budget? Round your answer to the nearest dollar. $ Marble Construction estimates that its WACC is 9% 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 9.9%. The company believes that it will exhaust its retained earnings at $2,600,000 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: 00 D Project Size IRR A $ 620,000 13.6% B 1,050,000 13.3 C 1,020,000 9.4 D 1,230,000 9.6 E 490,000 10.1 620,000 10.6 G 700,000 9.1 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- -Select- . Project A Project B Project C Project D Project E Project F Project G -Select- -Select- -Select- -Select- What is the firm's optimal capital budget? Round your answer to the nearest dollar. $
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