Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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...

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money Banking And Financial Markets

Authors: Stephen Cecchetti, Kermit Schoenholtz

3rd Edition

007337590X, 9780073375908

More Books

Students also viewed these Finance questions