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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
RMA revises MLR third time
(11) For some well-known estimates of marginal costs of funds, see Stuart (1984), Ballard, Shoven, and Whalley (1985), and Browning (1987).
Discounting according to output type
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