Should you use the nominal cost of debt or the effective annual cost?
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Should you use the nominal cost of debt or the effective annual cost?
Cost Of DebtThe cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking...
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Our 10 pretax estimate is the nominal cost of debt Since the firms debt has semiannual coupo...View the full answer
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Related Book For 
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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