Estimating the cost of [...] capital is more challenging than estimating the cost of [...] capital.
Answer
common equity
debt
If you want to change selection, open original toplevel document below and click on "Move attachment"
Parent (intermediate) annotation
Open it Estimating the cost of common equity capital is more challenging than estimating the cost of debt capital.
Original toplevel document
2.1. Taxes and the Cost of Capital 1 − 0.4) = €0.6 million because the interest reduces the company’s tax bill by €0.4 million. In this case, the before-tax cost of debt is 10 percent, whereas the after-tax cost of debt is (€0.6 million)/(€10 million) = 6 percent.
<span>Estimating the cost of common equity capital is more challenging than estimating the cost of debt capital. Debt capital involves a stated legal obligation on the part of the company to pay interest and repay the principal on the borrowing. Equity entails no such obligation. Estimating the co
Summary
status
not learned
measured difficulty
37% [default]
last interval [days]
repetition number in this series
0
memorised on
scheduled repetition
scheduled repetition interval
last repetition or drill
Details
No repetitions
Discussion
Do you want to join discussion? Click here to log in or create user.