Incremental cost 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.
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Financial considerations such as the discount rate, the price differential between truck/tractor models, salvage period, residual value, and the incremental cost of capital.
Incremental economic decisions must exceed or equal the incremental cost of capital hurdle.
The weighted cost of capital WCOC for a firm reflects the incremental cost of capital to the company given its plans on raising capital and the markets perceptions of the prospects for the company and, alternative opportunities for the use of capital in the market.
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