INCREMENTAL COST OF CAPITAL Definition

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INCREMENTAL COST OF CAPITAL is the weighted cost of the additional capital raised in a given period. Weighted cost of capital, also called composite cost of capital, is the weighted average of costs applicable to the issues of debt and classes of equity that compose the firm's capital structure. Also called marginal cost of capital.

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EPU see EQUIVALENT UNIT OF PRODUCTION.

DURATION DRIVERS represent the amount of time required to perform an activity.

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