Incremental cost of capital

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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 ?
Prospects for Brazil, India, South Africa, Indonesia and Turkey will also look grim if QE tapering in the US leads to higher marginal costs of capital from rising interest rates, exposing those with current account deficits and eroding the value of their currency.
The expected tapering of quantitative easing in the US will lead to higher marginal costs of capital from rising interest rates.
In a static environment, the average and marginal costs of capital equal one another, and therefore, the distinction is irrelevant.