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.


   

   

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



   

MBA Brief offers brief, yet very accurate definitions of MBA concepts, frameworks, methods and models. We keep it short and provide some links in case you'd like to learn more around a subject.




© 2020 MBA Brief - Last updated: 1-10-2020  -  Privacy   |   Terms