--%>

Describe the term Cost of debt

Briefly describe the term Cost of debt?

E

Expert

Verified

It is employed to evaluate the cost of capital. This is the primary thing that must be calculated in the start to find out the cost of capital. It consists of both imputed cost and contractual cost. It is stated as the needed rate of return that an investment which is debt has to yield to keep shareholder's interest.

   Related Questions in Business Economics

  • Q : Answer the following questions based on

    The dataset used in this question contains data on 180 economics journals for the year 2000. The variable descriptions are as follows: logoclc - log of the number of library subscription loglibcit - log of the library subscription price per citation.

  • Q : Illustrate how Microeconomics looks at

    Illustrate how Microeconomics looks at specific economic units?

  • Q : Resources of private Capitalism I have

    I have a problem in economics on Resources of private Capitalism. Please help me in the following question. The Private individuals own most resources and find out how they will be employed in an economic system of: (1) Socialism. (2) Capitalism. (3)

  • Q : Reason of Economic problem Why an

    Why an economic problem does arise? Answer: It arises due to following reasons: A) Shortage of resources. B) Alternative utilizations of resources. C) Limitless wants and limited resources.

  • Q : What is an inverse relationship Briefly

    Briefly explain the use of graphs as a way to present economic relationships. What is an inverse relationship?

  • Q : Elucidate Reliance on technology and

    Elucidate Reliance on technology and capital goods of the market system?

  • Q : What do you mean by spillover What do

    What do you mean by spillover. Write short note on it?

  • Q : Comparison between EVA and Ratio

    Comparison between EVA and Ratio Analysis: EVA helps in measuring the economic performance of the company. It is the profit earned by the firm less the cost of financing the firm’s capital. It shows that the shareholders gain when the return fro

  • Q : Explain about the arbitrage except

    Not like speculation, there arbitrage is: (w) an activity which is generally more lucrative when conditions are favorable. (x) a profitable and relatively riskless activity. (y) the process of representing a domestic company within fo

  • Q : What does high or low operating

    What does high or low operating leverage specify?