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incremental cost of capital

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  • Incremental Cost Of Capital — A term used in capital budgeting, the incremental cost of capital refers to the average cost a company incurs to issue one additional unit of debt or equity. The incremental cost of capital varies according to how many more or fewer units of debt …   Investment dictionary

  • incremental cost of capital — The overall cost of raising extra finance. For example, if extra debt is incurred, this increases the risk to equity and debt funders, who will in turn demand a higher rate of return on their investment. The concept is also applied to funding… …   Accounting dictionary

  • incremental cost of capital — The overall cost of raising extra finance. For example, if extra debt is incurred, this increases the risk to equity and debt funders, who will in turn demand a higher rate of return on their investment. The concept is also applied to funding… …   Big dictionary of business and management

  • incremental cost of capital — Average cost applicable to the issue of each additional unit of debt and equity. Bloomberg Financial Dictionary …   Financial and business terms

  • Capital budgeting — (or investment appraisal) is the planning process used to determine whether a firm s long term investments such as new machinery, replacement machinery, new plants, new products, and research and development projects are worth pursuing.Many… …   Wikipedia

  • Cost curve — In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. In a free market economy, productively efficient firms use these curves to find the optimal point of production (minimising cost), and… …   Wikipedia

  • cost — The opposite of revenue. An expense that reflects the price of purchasing goods, services and financial instruments. A cash cost means that cash is given up today to the purchase. Also, the purchase price of an investment, which is compared to… …   Financial and business terms

  • Capital, Volume I — is the first of three volumes in Karl Marx s monumental work, Das Kapital, and the only volume to be published during his lifetime. Originally published in 1867, Marx s aim in Capital, Volume I is to uncover and explain the laws specific to the… …   Wikipedia

  • Operating cost — Operating costs can be described as the expenses which are related to the operation of a business, or to the operation of a device, component, piece of equipment or facility. Business operating costs For a commercial enterprise, operating costs… …   Wikipedia

  • Marginal cost — A typical marginal cost curve with marginal revenue overlaid In economics and finance, marginal cost is the change in total cost that arises when the quantity produced changes by one unit. That is, it is the cost of producing one more unit of a… …   Wikipedia

  • Whole-life cost — Whole life cost, or Life cycle cost (LCC), refers to the total cost of ownership over the life of an asset [1]. Also commonly referred to as cradle to grave or womb to tomb costs. Costs considered include the financial cost which is relatively… …   Wikipedia

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