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Cost of Debt
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Simple Explain
Cost of Debt: What It Means and Formulas
The cost of debt refers to the total interest expense owed on a debt, and it can be the before-tax or after-tax cost. Companies use debt as part of their capital structures, and the cost of debt measure can help investors assess a company’s risk level. The formula for after-tax cost of debt involves the risk-free rate of return and the ...
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Dec 25, 2023
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