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As more and more funds are required by the firm, the cost of each component of the capital structure may increase. These incremental changes are most correctly referred to as:

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As more and more funds are required by the firm, the cost of each component of the capital structure may increase. These incremental changes are most correctly referred to as:

 Options:

A. the weighted average cost of capital
B. the marginal cost of capital
C. the cost of capital
D. the incremental cost of capital

 

The Correct Answer Is:

  • B. the marginal cost of capital

 

Conclusion

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