583FinanceMedium
In large expansion programs, increased riskiness and flotation cost associated with project can cause_______________?
ARise in transaction cost of capital
BFall in marginal cost of capital
CRise in marginal cost of capital
Correct answer
C. 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.