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Six differences between weighted average cost of capital and marginal cost of capital

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User Cycero
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WACC is the weighted average cost of capital already borrowed/invested.

Marginal cost of capital is the cost that will be incurred if one more $ of capital is raised either by equity or by debt.

So if more capital is borrowed and has a resulting higher marginal cost, the WACC increases as well.
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User Samuel Audet
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