Purchase Solution

The Cost of Debt

Not what you're looking for?

Ask Custom Question

How is the cost of debt determined? Does the cost of debt differ if the company is privately traded as opposed to publicly traded? How do you estimate debt for companies that are privately held?

Purchase this Solution

Solution Summary

How is the cost of debt determined? Does the cost of debt differ if the company is privately traded as opposed to publicly traded? How do you estimate debt for companies that are privately held?

Solution Preview

The cost of debt for a company can be determined by the interest rate (Ross, Westerfield, & Jaffe, 2010). This is calculated as an after-tax cost of debt to the company (Ross, Westerfield, & Jaffe, 2010). U.S. News and World Report give real good examples of this, proving that the cost of debt can be really expensive (Your Money, 2012).

If the company is privately ...

Purchase this Solution


Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Motivation

This tests some key elements of major motivation theories.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.