Cost of debentures, Finance Basics

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Posted Date: 2/14/2013 12:29:18 AM | Location : United States





Definition of Cost of Debentures

The effective rate that a company pays on its current debt. This can be calculated in either before- or after-tax returns; though, because interest expense is deductible, the after-tax cost is seen most often. This is one part of the capital structure of a company, which also includes the cost of equity.

Posted by Archie | Posted Date: 2/14/2013 12:30:25 AM


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