The marginal cost-of-funds curve for a firm shows the
A)interest rate that a firm must pay for additional funding.
B)rate of return that a firm gets from its investment projects.
C)amount of funds available to a firm for its investments.
D)sources of funds that a firm has for its various projects.

Question

Quizplus · Accepted Answer

The marginal cost-of-funds curve for a firm illustrates the interest rate that a firm must pay to obtain additional funding. This reflects the incremental cost to the firm for securing extra capital, which can vary depending on the amount of funds already raised and the firm's current financial condition.

The Marginal Cost-Of-Funds Curve for a Firm Shows the