The marginal cost of capital (MCC) is the weighted average cost of the last dollar of new capital that the firm raises. The MCC generally declines as greater amounts of a specific type of capital are raised during a given period.
Answer the following statement true (T) or false (F)
False
The marginal cost of capital (MCC) is defined as the weighted average cost (WACC) of the last dollar of new capital that the firm raises. The marginal cost rises as more capital is raised during a given period. See 11-2: Weighted Average Cost of Capital (WACC)
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