Marginal cost of capital is the cost of:

A. Additional Sales is not the cost of capital. Sales are the revenue that a company generates from its business activities. The cost of capital is the cost of financing those business activities.

C. Additional Interests is not the cost of capital. Interest is the cost of borrowing money. The cost of capital is the cost of financing all of a company’s activities, including borrowing money.

D. None of the above is the correct answer.