Which of the following statements about the marginal cost of capital is NOT true?
Which of the following statements about the marginal cost of capital is NOT true?
A. The marginal cost of capital is the weighted average of a company’s cost of raising its capital.
B. As more capital is raised, the marginal cost of capital rises.
C. The marginal cost of capital can be used to help choose between mutually exclusive projects.
D. The marginal cost of capital can be used to establish the minimum acceptable rate of return.
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