Marginal cost of capital schedule

Question

What is MCC (marginal cost of capital schedule)? The schedule is always a horizontal line. Elaborate.

Answer 1

a) Capital schedule’s Marginal cost is a graphical representation of the weighted average cost of capital at various levels of financing.
b) The MCC schedule is not a horizontal line all the time. For several firms MCC schedule increases, generally at discreet intervals, when the funds amount to be raised increases.