Examlex
Which of the following statements is incorrect?
Capital Spending
Refers to funds spent by a business or government on acquiring or maintaining physical assets such as property, plants, and equipment.
MCC
Marginal Cost of Capital; the cost of obtaining an additional dollar of new capital.
Marginal Cost of Capital
The cost of obtaining one additional dollar of new capital, which reflects the cost of the last unit of capital raised.
Flotation Costs
The total costs that are incurred by a company in offering new securities to the public, including underwriting, legal, and registration fees.
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