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The company has a certain amount of debt. ( let say $ 1 0 0 0 ) rs = 1 3 . 4 % ,

The company has a certain amount of debt. (let say $1000)
rs =13.4%, ro =12%.Calculate the cost of debt.
-> some say the answer is COST of DEB = expense / total debt, thus -> $1000*13.4%/1000=13.4%
-> i have a question that don't i have to use the Ro somehow? please help...

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