Carlos enjoys hazelnut coffee every morning. he also have a slice of banana bread every once in a while. assuming that there is an increase in the price of coffee and as a result carols, made a small change in his consumption for coffee. on the other hand when the price of banana bread increases, carlos decreases the consumption of bread by a significant amount. this example signifies the importance of

Miami incorporated estimates that its retained earnings break point (bpre) is $21 million, and its wacc is 13.40 percent if common equity comes from retained earnings. however, if the company issues new stock to raise new common equity, it estimates that its wacc will rise to 13.88 percent. the company is considering the following investment projects: project size irr a $4 million 14.00% b 5 million 15.10 c 4 million 16.20 d 6 million 14.20 e 1 million 13.42 f 6 million 13.75 what is the firm's optimal capital budget?