Question

Write short notes on: Cost of perpetual debt, cost of redeemable debt, cost of

preference shareand cost of equity.
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Answer 1

Answer:

The cost of debt is the rate a company pays on its debt, such as bonds and loans. The key difference between the cost of debt and the after-tax cost of debt is the fact that interest expense is tax-deductible. Cost of debt is one part of a company's capital structure, with the other being the cost of equity