Why is the cost of financing a project with retained earning

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Why is the cost of financing a project with retained earnings less than the cost of financing it with a new issue of common stock?

Reference no: EM131107336

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Describe the logic underlying the use of target : Describe the logic underlying the use of target weights to calculate the WACC, and compare and contrast this approach with the use of historical weights. What is the preferred weighting scheme?
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