The marginal cost of capital as more capital is raised during a given period.

Name: The marginal cost of capital as more capital is raised during a given period.
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Question

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The marginal cost of capital increases as more capital is raised during a given period, as new investors will require a higher return on their investment to compensate for the increased risk resulting from the greater amount of leverage used to finance the company.

The Marginal Cost of Capital as More Capital Is Raised