The__________ is the level of total financing at which the cost of one of the financing componentsrises.
A) weighted average cost of capital
B) target capital structure
C) breaking point
D) weighted marginal cost of capital

Question

Quizplus · Accepted Answer

The breaking point is the level of total financing at which the cost of one of the financing components rises. At this point, the cost of capital will increase, which could make it less desirable for the company to acquire additional financing beyond this point.

The__________ Is the Level of Total Financing at Which the Cost