Question

The cost of debt is generally lower than the cost of equity however according to

Answer 1

Hiii

The cost of debt is usually 4% to 8% while the cost of equity is usually 25% or higher

Answer 2

Answer:

As the cost of debt is finite and the company will not have any further obligations to the lender once the loan is fully repaid, generally debt is cheaper than equity for companies that are profitable and expected to perform well

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