Question

what do u mean by " Higher cost of borrowing " ?

Answer 1

Higher cost of borrowing means the amount of money that you are required to pay in your attempt of raising the finance.For e.g, if you take a loan from a bank at the rate of 10% per annum,then this 10% interest is your cost of borrowing.Suppose you had an option to borrow at the rate 6% per annum and in place of that you took the 10% one,then that's costing you more.In other words,that's the higher cost of borrowing. I hope it serves your query. :)