Incremental cost of capital

(redirected from Marginal Costs of Funds)

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 ?
There are three common parameters for computing the MLR: marginal costs of funds, negative carry charges on cash reserve ratio and operating cost.
11) For some well-known estimates of marginal costs of funds, see Stuart (1984), Ballard, Shoven, and Whalley (1985), and Browning (1987).