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 |
