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We cannot assume that obtaining finance (of any source) is without external costs, i.e. costs for marketing or to underwriters. Using your knowledge of the
We cannot assume that obtaining finance (of any source) is without external costs, i.e. costs for marketing or to underwriters. Using your knowledge of the cost of finance capital, identify what you expect to happen to the weighted average cost of capital if additional costs such as these are incurred in the securing new equity finance?
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