Incremental cost of capital

(redirected from Marginal Costs of Capital)

Incremental cost of capital

Average cost applicable to the issue of each additional unit of debt and equity.

Incremental Cost of Capital

The average cost to a company to issue one more unit of debt or equity. The incremental cost of capital varies according to how many more or fewer units a company wishes to issue. See also: Incremental cost.
References in periodicals archive ?
In a static environment, the average and marginal costs of capital equal one another, and therefore, the distinction is irrelevant.
However, as we demonstrate in this paper, in a dynamic setting, the average and the marginal costs of capital diverge.