Typically, the more capital a company wants to raise, the more expensive it will be for each additional increment; i.e., as its capital budget grows, its marginal cost of capital (MCC) increases. Because a company will undertake a project only when that project’s internal rate of return (IRR) is greater than the cost of capital […]
This article is for members only. You can become a member now by purchasing a
CFA® Level I Corporate Finance Membership, CFA® Level I Membership
This will give you access to this and all other articles at that membership level.