⭐ Important points (exam-critical)
- ⭐Market values preferred over book values for WACC weights.
- ⭐Beta levered = Beta unlevered × [1 + (1−t)(D/E)] (Hamada equation).
- ⭐Floatation costs reduce net proceeds — increases effective cost.
- ⭐Marginal cost of capital uses new issue cost, not historical.
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