Business, Legal & Accounting Glossary
The cost associated with raising one additional dollar of capital. The marginal cost will vary according to the type of capital used. For example, raising funds through the use of unsecured or subordinated debt, or through debt that requires higher interest rates to offset risk, will be more expensive than debt that is backed by collateral, such as a secured bond.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Marginal Cost Of Capital are sourced/syndicated and enhanced from:
This glossary post was last updated: 20th November, 2021 | 0 Views.