Cost of debt

  The interest rate paid on new increments of debt capital multiplied by 1 minus the tax rate.
  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary

Energy terms . 2014.

Look at other dictionaries:

  • cost of debt — UK US noun [S] ► ECONOMICS, FINANCE interest and other charges a company has to pay on the amount it has borrowed in the form of bonds, etc.: »The article examines whether existing business models can support the significantly higher cost of debt …   Financial and business terms

  • Cost Of Debt — The effective rate that a company pays on its current debt. This can be measured in either before or after tax returns; however, because interest expense is deductible, the after tax cost is seen most often. This is one part of the company s… …   Investment dictionary

  • Agency Cost Of Debt — A problem arising from the conflict of interested created by the separation of management from ownership (the stockholders) in a publicly owned company. Corporate governance mechanisms, such as boards of directors and the issuance of debt, are… …   Investment dictionary

  • Cost of capital — The cost of capital is a term used in the field of financial investment to refer to the cost of a company s funds (both debt and equity), or, from an investor s point of view the shareholder s required return on a portfolio of all the company s… …   Wikipedia

  • Cost of equity — In finance, the cost of equity is the return (often expressed as a rate of return) a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake by investing their capital. Firms need to acquire… …   Wikipedia

  • Cost Of Capital — The required return necessary to make a capital budgeting project, such as building a new factory, worthwhile. Cost of capital includes the cost of debt and the cost of equity. The cost of capital determines how a company can raise money (through …   Investment dictionary

  • Cost of capital —   The rate of return a utility must offer to obtain additional funds. The cost of capital varies with the leverage ratio, the effective income tax rate, conditions in the bond and stock markets, growth rate of the utility, its dividend strategy,… …   Energy terms

  • Debt deflation — is a theory of economic cycles, which holds that recessions and depressions are due to the overall level of debt shrinking (deflating): the credit cycle is the cause of the economic cycle. The theory was developed by Irving Fisher following the… …   Wikipedia

  • Debt restructuring — is a process that allows a private or public company – or a sovereign entity – facing cash flow problems and financial distress, to reduce and renegotiate its delinquent debts in order to improve or restore liquidity and rehabilitate so that it… …   Wikipedia

  • Cost of conflict — is a tool which attempts to calculate the price of conflict to the human race. The idea is to examine this cost, not only in terms of the deaths and casualties and the economic costs borne by the people involved, but also the social,… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.