Solution-Equity from the sale of new common stock

Equity from the sale of new common stock

Reference no: EM133068512

The WACC is the weighted average of the cost of debt, preferred stock and common equity. Would the WACC be different if the equity for the coming year came solely in the form of retained earnings, versus some equity from the sale of new common stock?

Would the calculated WACC depend in any way on the size of capital budget?

How might dividend policy affect the WACC?(at least 3 references please)

Reference no: EM133068512

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Equity from the sale of new common stock

Reference no: EM133068512

Reference no: EM133068512

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