WACC vs MCC

WAAC = cost of capital for a given project based on capital structure, risk of project.
MCC = cost of raising more capital. It’s like any marginal cost curve in econ. Think of it as a supply curve for investors. An increasing curve means that investors require higher and higher rates of return (higher cost capital) as you raise more money.
 
Thanks.
Based on the CFA textbook, it was indicated that WACC is also known as MCC. Therefore, I thought they mean the same.
 
Back
Top