Marginal Cost of Capital Schedule

Marginal Cost Of Capital Schedule

Marginal Cost of Capital (MCC) Schedule is a graph that relates the firm’s weighted average cost of each dollar of capital to the total amount of new capital raised.

The WACC is the minimum rate of return allowable, and still meeting financial obligationts such as debt, interest payments, dividends etc... Therefore, the WACC averages the required returns from all long-term financing sources (Debt and Equity).

the WACC is based on cash flows, which are after-tax. By the same notion then, the WACC should be calculated on an after-tax basis.

Read more about Marginal Cost Of Capital Schedule:  WACC Components

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