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You are considering multiple capital budgeting projects, and you want to know your possible WACC outcomes. Right now your debt is at 7.3% and your

You are considering multiple capital budgeting projects, and you want to know your possible WACC outcomes. Right now your debt is at 7.3% and your equity costs 12.7% and your tax rate is 22%. You would like to maintain your current capital structure weights and currently have $45 million in debt and $112 million in equity. You will generate $6.3 million of internal equity in the coming year. If you raise your debt less than $3 million then it stays at the current rate, otherwise the new debt rate would be 7.7%. If you raise more than $12 million in debt it moves to 8.4%. If you raise outside equity the new equity rate will be 14.5%. 


What amounts of total capital raised will cause the equity or debt cost increases to happen?


What will be the possible WACCs at those levels and what is WACC now?

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