As more capital is raised, marginal cost of capital rises

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Principles of Finance II WEEK 1: Discussion Prompt #2 The marginal cost of capital (MCC) is the cost of the last dollar of capital raised, essentially the cost of another unit of capital raised. As more capital is raised, the marginal cost of capital rises. How can too much capital be damaging to the financial state of the organization? In your response, provide two examples that showcase the marginal cost of capital and the impact this makes in the decision-making process.

Reference no: EM132062697

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