In large expansion programs, the increased riskiness and the floatation cost associated with project can cause Options: A . &nbsprise in marginal cost of capital B . &nbspfall in marginal cost of capital C . &nbsprise in transaction cost of capital D . &nbsprise in transaction cost of capital

In large expansion programs, the increased riskiness and the floatation cost ass

Question

In large expansion programs, the increased riskiness and the floatation cost associated with project can cause

Options:

A . rise in marginal cost of capital

B . fall in marginal cost of capital

C . rise in transaction cost of capital

D . rise in transaction cost of capital

Answer: Option A
Answer: (a).rise in marginal cost of capital

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