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Author Topic: Marginal Cost  (Read 10 times)
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Eugine
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« on: September 03, 2010, 11:45:16 PM »

The marginal cost of capital depends on the current cost of individual sources of capital (common stock, retained earnings, preferred stock, and debt) and the proportions in which the sources will be used. This cost is stated as a percentage and is compared to the return that is expected to be earned on a proposed investment.
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