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You need to raise $200,000 to start a business. What sources would you consider and what are each of their costs? What is the marginal

You need to raise $200,000 to start a business.

  1. What sources would you consider and what are each of their costs? What is the marginal cost of capital for your 200,000th dollar?
  2. Optional: Calculate your WACC
  3. Optional: Explain why the Marginal Cost of Capital is (always?) higher than the WACC.

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