In large expansion programs, the increased riskiness and the floatation cost associated with project can cause ___________?
Arise in marginal cost of capital
Brise in transaction cost of capital
Cfall in marginal cost of capital
Correct answer
A. rise in marginal cost of capital
Explanation
rise in marginal cost of capital is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.