What is a marginal cost of capital schedule (mcc), Financial Management

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What is a marginal cost of capital schedule (MCC)?  Is the schedule always a horizontal line?  Explain.

The marginal cost of capital schedule is a graphic representation of the weighted average cost of capital at different levels of financing.  The MCC schedule isn't always a horizontal line. For various firms the MCC schedule increases, typically at discreet intervals as the amount of funds to be increase increases. 

 


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