Which of the following steps is not necessary for calculating the marginal cost of capital schedule?
A)Determine each point at which a break in the marginal cost of capital schedule occurs.
B)Make a list of all the break points.
C)Determine the cost of capital for each component in the intervals between the breaks.
D)Estimate the change in the cost of capital within each interval.
E)Calculate the weighted averages of these component costs to obtain the WACCs in each interval.

Question

Quizplus · Accepted Answer

Estimating the change in the cost of capital within each interval is not necessary for calculating the marginal cost of capital schedule. The focus is on determining the cost of capital at each break point and calculating the weighted average cost of capital (WACC) for each interval.

Which of the Following Steps Is Not Necessary for Calculating