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Username: Maria Rating:  Asked to: Chaoxiang Lee Date Created: 12 Jul 2018 |
| Category | 28 |
| Tag | Financial |
| Question | What is the 'Cost of Debt'? |
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Hello Maria, Cost of debt refers to the effective rate a company pays on its current debt. In most cases, this phrase refers to after-tax cost of debt, but it also means the company's cost of debt before taking taxes into account. The difference in cost of debt before and after taxes lies in the fact that interest expenses are deductible. |
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