Cost of Debt:
It is the main technique of cost of capital in finance and financial management. The Cost of debt is computed on the debt, bonds, loan or debentures via multiplying interest rate with certain amount of debt. When rate is not given, then you can too compute cost of debt rate. This rate is termed as Kd.
Cost of Debt without Any Adjustment (Kd) = Amount of Interest / Amount of Loan X 100
In situation, company issues the bonds or debenture on premium, at that time; we can compute cost of debt by the formula shown below:
Cost of Debt (Kd) = Interest amount/ (Amount of debenture + Amount of premium) X 100
In situation, company issues the bonds or debenture on discount, at that time; we can compute cost of debt by the formula shown below:
Cost of Debt (Kd) = Interest Amount/ (Amount of Debenture – Amount of Discount) X 100
When we have to compare cost of debt with the cost of equity, then we have to compute it after adjustment of tax since interest is deducted from gain before tax although dividend is removed from gain after tax.
Cost of Debt = Amount of Interest (1 – Tax Rate) / Amount of Loan X 100
For illustration, interest rate of company is 10% before tax; compute cost of debt after tax of 30%
Cost of Debt = 10 % X (1-30%) = 7%
Latest technology based Finance Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Finance help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Finance, project ideas and tutorials. We provide email based Finance help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Finance. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Finance Homework help and assignment help services. They use their experience, as they have solved thousands of the Finance assignments, which may help you to solve your complex issues of Finance. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
tutorsglobe.com biotechnology assignment help-homework help by online botany tutors
Monocotyledons and Dicotyledons tutorial all along with the key concepts of Number of cotyledons, Pollen structure, Number of flower parts, Leaf veins, Stem vascular arrangement and Root development
Even though there are several businesses in the UK that trade as sole proprietorships, like partnerships and in other forms, overwhelmingly the most significant business form is the limited company.
www.tutorsglobe.com offers shift in demand curve homework help, shift in demand curve assignment help, answering questions to shift in demand curve, economics solutions by online economics tutor's help.
let the qualified tutors of literature review annotated bibliography assignment help fetch you notable grades at feasible prices.
www.tutorsglobe.com offers answering questions to difficulties in measurement of national income, economics assignment help - homework help by online tutors.
tutorsglobe.com saprotrophs assignment help-homework help by online nutrition in fungi tutors
Classification of lipids tutorial all along with the key concepts of Acylglycerols, Phosphoacylglycerols, Sphingolipids, Sphingomyelins, Glycosphingolipids, Gangliosides, Waxes, Steroids and Terpenes
tutorsglobe.com radiocarbon dating assignment help-homework help by online nuclear chemistry tutors
tutorsglobe.com primary lymphoid organ assignment help-homework help by online structure and functions of immune system tutors
Evidence of evolution-adaptation and Speciation tutorial all along with the key concepts of Fossil Evidence, Biogeographical evidence, Anatomical evidence, Biochemical evidence, Speciation, Models of speciation, Mechanisms of speciation
tutorsglobe.com offset assignment help-homework help by online propagation by modified subaerial stem tutors
www.tutorsglobe.com offers creation of control flow diagram homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
tutorsglobe.com skin assignment help-homework help by online receptor organs tutors
Reactions of Quinolines tutorial all along with the key concepts of Physical and Chemical Properties of Quinoline, Electrophilic Substitution, Nucleophilic Addition/Substitution of of Quinoline
1930997
Questions Asked
3689
Tutors
1463843
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!