The marginal cost of capital (MCC) is the cost of the last rand of new capital that the firm raises, and the marginal cost declines as more and more of a specific type of capital is raised during a given period.

Question

Quizplus · Accepted Answer

The marginal cost of capital typically increases as more capital is raised due to the rising cost of obtaining additional funds and the increased risk perceived by investors.

The Marginal Cost of Capital (MCC) Is the Cost of the Last