Incremental Cost Of Capital

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Dictionary Says

Definition of 'Incremental Cost Of Capital'

A term used in capital budgeting, the incremental cost of capital refers to the average cost a company incurs to issue one additional unit of debt or equity. The incremental cost of capital varies according to how many more or fewer units of debt or equity a company wishes to issue. The calculation frequently used to determine the cost of capital is the weighted average cost of capital formula (WACC), which weights the cost of debt and equity, according to the company's capital structure.
Investopedia Says

Investopedia explains 'Incremental Cost Of Capital'

The term "incremental cost of capital" refers to costs associated with acquiring more debt or equity for a future project. The incremental cost of capital is usually equal to the hurdle rate, which is the required rate of return for the acceptance or rejecting of a project.
Search results for

'Incremental Cost Of Capital'

  • CFA Level 1 Study Guide - Liabilities - Effects Of Capital Vs. ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/capital-operating-leases-effects.asp
    ... Capital Budgeting Basics; 11.4 The Cost of Capital; 11.5 Cost of Retained Earnings;
    11.6 Cost of Newly Issued Stock; 11.7 Target Capital ...
  • CFA Level 1 Study Guide - Corporate Finance - Cash Flow and NPV ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/cash-flow-npv-net-present-value-applications.asp
    ... Capital Budgeting Basics; 11.4 The Cost of Capital; 11.5 Cost of Retained Earnings;
    11.6 Cost of Newly Issued Stock; 11.7 Target Capital ...
  • CFA Level 1 Study Guide - Microeconomics - Marginal Benefit and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/microeconomics/marginal-benefit-cost.asp
    ... Capital Budgeting Basics; 11.4 The Cost of Capital; 11.5 Cost of Retained Earnings;
    11.6 Cost of Newly Issued Stock; 11.7 Target Capital ...
  • Hedge Fund Failures Illuminate Leverage Pitfalls

    http://www.investopedia.com/articles/optioninvestor/07/leverage-pitfalls.asp
    ... Embedded Cost of Capital, -4%, ($4.0). ... By doing this, they make an incremental returns
    for each bond purchased with leverage, assuming the cost of the leverage ...
  • Discover Master Limited Partnerships

    http://www.investopedia.com/articles/basics/07/ml_partnerships.asp
    ... is transferred to an heir, the cost basis is ... The limited partner invests capital
    into the venture and ... For each incremental dollar distributed to LP unitholders ...
  • EVA: What Does It Really Mean? | Investopedia

    http://www.investopedia.com/university/EVA/EVA5.asp
    ... multiplied by the weighted average cost of capital ... every dollar of invested capital
    and makes ... studies have demonstrated that the incremental information gained ...
  • CFA Level 1 Study Guide - Liabilities - Determining The Value Of ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/lease-asset-value-determination.asp
    ... Capital Budgeting Basics; 11.4 The Cost of Capital; 11.5 Cost of Retained Earnings;
    11.6 Cost of Newly Issued Stock; 11.7 Target Capital ...
  • CFA Level 1 Study Guide - Financial Ratios - Business Risk Ratios ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/business-risk-ratios.asp
    ... Capital Budgeting Basics; 11.4 The Cost of Capital; 11.5 Cost of Retained Earnings;
    11.6 Cost of Newly Issued Stock; 11.7 Target Capital ...
  • Dissecting The Bear Stearns Hedge Fund Collapse

    http://www.investopedia.com/articles/07/bear-stearns-collapse.asp
    ... buy more CDOs than you can pay for with capital alone. Because these CDOs pay an
    interest rate over and above the cost of borrowing, every incremental unit of ...
  • Tax-Loss Harvesting: Reduce Investment Losses

    http://www.investopedia.com/articles/taxes/08/tax-loss-harvesting.asp
    ... offset taxable income - leading to incremental tax savings ... that as of 2011, a capital
    loss by ... For IRA Holders.) Administrative Cost Additionally, transacting ...

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