Marginal Cost and Cost of Capital
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An examination of the cost of capital, marginal cost of capital the use of the Capital Asset Pricing Model and the effect on the firm's budget process.
From the Paper:"Cost of capital and how it is calculated: In simplest terms, the cost of capital is the return necessary to make a capital budgeting project worthwhile. A firm's total cost of capital is based on its cost of debt and cost of equity. This determines how the company can raise funds to invest in new projects or fund expanding operations. It can be raised through debt equity or a combination of the two..."
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Marginal Cost and Cost of Capital (2008, December 01) Retrieved December 09, 2019, from https://www.academon.com/term-paper/marginal-cost-and-cost-of-capital-125832/
"Marginal Cost and Cost of Capital" 01 December 2008. Web. 09 December. 2019. <https://www.academon.com/term-paper/marginal-cost-and-cost-of-capital-125832/>