sorry
ih7sbdhjdlosdfbnug
Cost of debt is the original cost of borrowing including original interest rate Marginal cost of debt is new loan which extended from the previous one, the interest of which is called marginal cost of debt.
Cost of debt considers only the cost that goes to the debtholders. Cost of capital considers debt and equity costs both.
Perpetual government debt (to be paid by the next elected party, and so on).
A coupon rate is not a good estimate of a firm's cost of debt, as it is only a reflection of the firm's cost of debt when bonds were issued, not the current cost of debt. It's not representative of the yield in the current market.
Weighted average cost of capital includes cost of debt and cost of equity. Thus irrespective of existing proportion of debt and equity, the marginal cost is always applicable.
The after-tax cost of debt is predominantly based on marginal pretax costs, as well as marginal or statutory tax rates.
WACC = Cost of Debt * Weight of Debt = + Cost of equity * Weight of Equity WAAC = .08*.10 + .12*.90 WAAC = 10.88%
The after-tax cost of debt will almost always be below
Your debt is then written off as the car covers the cost of the debt.
Calculate cost of debt for what??????
Bad debt expense is a product cost, depends directly on sales.