A company’s marginal cost of capital (MCC) may increase as additional capital is raised and returns to investment opportunities are believed to decrease as they makes additional investments, as represented by the [...]
A company’s marginal cost of capital (MCC) may increase as additional capital is raised and returns to investment opportunities are believed to decrease as they makes additional investments, as represented by the [...]
A company’s marginal cost of capital (MCC) may increase as additional capital is raised and returns to investment opportunities are believed to decrease as they makes additional investments, as represented by the [...]
If you want to change selection, open original toplevel document below and click on "Move attachment"
Parent (intermediate) annotation
Open it mpany’s marginal cost of capital (MCC) may increase as additional capital is raised, whereas returns to a company’s investment opportunities are generally believed to decrease as the company makes additional investments, as represented by the <span>investment opportunity schedule (IOS).<span><body><html>
Original toplevel document
2.3. Applying the Cost of Capital to Capital Budgeting and Security Valuation cost of capital estimate is in capital-budgeting decision making. What role does the marginal cost of capital play in a company’s investment program, and how do we adapt it when we need to evaluate a specific investment project?
<span>A company’s marginal cost of capital (MCC) may increase as additional capital is raised, whereas returns to a company’s investment opportunities are generally believed to decrease as the company makes additional investments, as represented by the investment opportunity schedule (IOS).2 We show this relation in Figure 1, graphing the upward-sloping marginal cost of capital schedule against the downward-sloping investment opportunity schedule. In the context of a compa
Summary
status
not learned
measured difficulty
37% [default]
last interval [days]
repetition number in this series
0
memorised on
scheduled repetition
scheduled repetition interval
last repetition or drill
Details
No repetitions
Discussion
Do you want to join discussion? Click here to log in or create user.