Weighted Marginal Cost of Capital

   

Definition: Weighted Marginal Cost of Capital is the WACC applicable to the next dollar of the total new financing.
Capital is any money used to finance a business and/or its operations.
Capital can be acquired from many different sources: traditional debt or equity financing or owner financing, grants, gains on investment capital, retained earnings, accrual financing contracts and forward payment agreements on capital.
The WMCC and cost of capital change over time.


   
   

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