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Hi Sir,
Does marginal cost of capital mean the same as WACC?
If not, then what is the difference between them?Marginal cost is the extra cost of raising extra finance. It is only the same as the WACC if the extra finance is raised in the same ratio of debt to equity as the existing finance is raised.
You cannot be asked to calculate the marginal cost of capital.
The relevant free lecture is that on chapter 18 of the free lecture notes.
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