Multiple Choice
Marginal cost of capital:
A) recognizes that cost of capital does not stay constant as more funds are raised.
B) usually provides the same capital budgeting choices as the use of weighted average cost of capital.
C) can be defined as the cost of capital when no retained earnings are available for expansion.
D) assumes an increasing cost of equity.
Correct Answer:
Verified
Correct Answer:
Verified
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