What is Marginal Cost of Capital? Definition and meaning

Marginal Cost of Capital

Definition: Marginal Cost of Capital is the cost associated with raising one extra dollar at a particular moment via any form of capital.
Capital is any money used to finance a business and/or its operations. There are many different sources (types) of capital: traditional debt or equity financing or owner financing, grants, gains on investment capital, retained earnings, accrual financing contracts and forward payment agreements on capital.
There is a cost associated with obtaining capital. The cost is NOT the same for each type and changes over time.

💡

Learn more about Marginal Cost of Capital.

More on investing: Alternative Investments, Asset Management, Break-even Point, BRIC Countries, Capital Structure, more...

You may also like: Full-time MBA, Executive MBA, Executive Education, Online MBA.

MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.

Add MBA Brief to your desktop / iPad