Cost of Debt
Cost of Debt Formula
| \(\large{ COD = IE \; \left( 1 - TR \right) }\) |
Where:
\(\large{ COD }\) = cost of debt
\(\large{ IE }\) = interest expense
\(\large{ TR }\) = tax rate
| \(\large{ COD = IE \; \left( 1 - TR \right) }\) |
\(\large{ COD }\) = cost of debt
\(\large{ IE }\) = interest expense
\(\large{ TR }\) = tax rate