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Cost of Debt

Cost of debt, abbreviated as COD, is the debt a company owes its lenders.  

Cost of Debt Formula
\( COD \;=\; IE \cdot \left( 1 - TR  \right)  \)
Symbol
\( COD \) = Cost of Debt
\( IE \) = Interest Expense
\( TR \) = Tax Rate

 

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