Cost of Debt

on . Posted in Project Management Engineering

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

 

Cost of Debt Formula

\(\large{ COD = IE \; \left( 1 - TR  \right)  }\)
Symbol
\(\large{ COD }\) = cost of debt
\(\large{ IE }\) = interest expense
\(\large{ TR }\) = tax rate

 

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