Cost of Debt

Essay specific features

 

Issue:

Business

 

Written by:

Anthony S

 

Date added:

November 14, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 711

 

Was viewed:

2170 times

 

Rating of current essay:

 
Essay content:

Considering the case that individuals can deduct the interest, makes the tax after cost more popular than the before tax. A business will typically use different bonds, loans, and different techniques for debt. This is a measure that individuals pay to a business to use the debt financing. This means of measurement is a good opportunity for investors to get an idea of how risky the business endeavors are when compared to other companies...
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This means of measurement is a good opportunity for investors to get an idea of how risky the business endeavors are when compared to other companies. This is because a riskier business will typically have an increased cost of their debt. "In order to obtain the after tax rate, you must multiply the before tax rate by one minus the marginal rate (before tax rate X (1-marginal tax))...
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