The cost of capital that the investment analyst is concerned with is a marginal cost.
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2. COST OF CAPITAL ponent cost of capital . Because we are using the cost of capital in the evaluation of investment opportunities, we are dealing with a marginal cost—what it would cost to raise additional funds for the potential investment project. Therefore, <span>the cost of capital that the investment analyst is concerned with is a marginal cost.
Let us focus on the cost of capital for the entire company (later we will address how to adjust that for specific projects). The cost of capital of a company is the require
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