Which is lower for company cost of debt or cost of quality, Financial Management

Which is lower for a given company:  the cost of debt or the cost of equity?  Explain.  Ignore taxes in your answer.

The cost of debt is all the time less than the cost of equity for a given firm.  This is for the reason that the debt investor is taking a lower risk than the equity investor and thus the required rate of return is lower. 

 

Posted Date: 6/17/2013 6:16:06 AM | Location : United States







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