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the select options are either accept or don't accept thank u in advance. Marble Construction estimates that its WACC is 10% if equity comes from
the "select" options are either "accept" or "don't accept"
thank u in advance.
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 A $650,000 14.0% B 1,050,000 13.5 1,000,000 11.2 D 1,200,000 11.0 500,000 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? E Project A -Select- Project B -Select- Project C -Select- TITRE Project D -Select- V Project E -Select- 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. $Step by Step Solution
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