Capital components A. The amount of capital expenditures made, at which the firm's marginal cost of capital increases. Investment opportunity schedule B. The cost associated with a firm's borrowed financial capital. Opportunity cost principle C. The average rate paid by a firm to secure the outstanding financial capital used to acquire the firm's assets. Breakpoint D. This concept argues that a firm's retained earnings are not free to the firm. Target capital structure E. The combination of debt, preferred stock, and common equity that will maximize the value of the firm's common stock. Flotation costs F. These costs are generally expressed as a percentage of the total amount of securities sold, including the costs of printing the security certificates, applicable taxes, and issuance and marketing fees. Marginal cost of capital G. A table or graph of a firm's potential investments listed in decreasing order of their internal rates of return. Cost of capital H. The weighted average cost of the last dollar raised by a firm, or the firm's incremental cost of capital. Weighted average cost of capital I. This term refers to the individual sources of the firm's financing, including its debt, preferred stock, retained earnings, and newly issued common equity. Cost of debt J. The minimum return that must be earned on a firm's investments to ensure that the firm's value does not decrease