Capital schedule represent a series of average costs

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In what sense does the marginal cost of capital schedule represent a series of average costs? Please explain as thorough as possible.

18. Common stock outstanding = 1,000,000 shares

Preferred stock = 500,000 shares

Convertible bonds = $5,000,000, 6% convertible to 200,000 shares

Net income = $3,000,000

Preferred dividends = $50,000

Tax rate = 35%

Reference no: EM131014782

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