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.
earth-internal structure and construction tutorial all along with the key concepts of origin of the earth, sources of earth's zoning, motions of earth, rotation of the earth, structure of earth, inhomogeneity of the solid earth, solid earth surface
Biology tutorial tutorial all along with the key concepts of Development of Sperm, Development of the egg, Gamete Interaction, Sperm-egg fusion, Egg activation and pronuclei formation, formation of gametes, zona pellucida and spermiogenesis
www.tutorsglobe.com offers triangle and its angles homework help, triangle and its angles assignment help, online tutoring assistance, geometry mathematics solutions by online qualified math tutors help.
Depth First Search-Assignment help and Homework help along with the key concepts of DFS algorithm Implementation, DFS Solution, Iterative Deepening and Depth Limited Search.
Drug Bioassay and Sensitivity Tests tutorial all along with the key concepts of Drug Bioassays, Matching bioassays, Interpolation method and Drug Sensitivity Tests
Energy Metabolism tutorial all along with the key concepts of Enzymes and Energy, Regulating Metabolism, Do Enzymes Regulate Metabolic, Energy Transformations in Plants Photosynthesis and Flow of Energy
www.tutorsglobe.com offers sample assignments and solved problems in unbalanced assignment problems in operation research subject and topics.
www.tutorsglobe.com offers software requirements specification homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
Metabolisms and Behavior in the Environment tutorial all along with the key concepts of Metabolism of Insecticides, Botanicals, Chlorinated Hydrocarbons, Organophosphorus Compounds, Methyl-Dimethyl Carbamates, Behavior-Properties of Pesticides, Fate of Pesticide in the Atmosphere
Cell and its constituent organelles tutorial all along with the key concepts of cytoplasm, Nucleus, Chromatin, Nuclear Pore Complexes, Import into the nucleus, Export from the nucleus, Mitochondria and Chloroplasts, Golgi apparatus, Endoplasmic reticulum, Protoplasm, Cytoplasm
Enzymes-Vitamins and Co-enzymes tutorial all along with the key concepts of Definition of Enzymes, Nomenclature of Enzymes, Categorization of Enzymes, General Properties of Enzymes, How Enzymes Work, Co-enzymes and Vitamins
tutorsglobe.com divisions of economics assignment help-homework help by online nature and scope of economics tutors
www.tutorsglobe.com offers UML Diagrams homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
Basic Petroleum refining tutorial all along with the key concepts of Separation into Components, Fractional Distillation and Vacuum Distillation, Absorption and Stripping, Solvent Extraction and Adsorption, Thermal Diffusion and Crystallization, Cracking and Fluid Catalytic Cracking
Thermoplastic and Thermosetting Polymers tutorial all along with the key concepts of Thermosets, Characteristics of Thermoplastic, Industrially important thermoplastic-thermosetting polymers
1954257
Questions Asked
3689
Tutors
1485277
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!