Interest Rate for calculating Cost of debt (Kd) is taken as per question for eg: 8% Debentures are issued, here Interest rate for calculation is 8%
, This is taken as interest is calculated always on fare value at rate its is actually issued.WACC Cost of Debt(Kd) * % to Total Capital is taken.
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Anju Poolakkal
Student
Calicut
India
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Original Message:
Sent: 04-24-2022 06:45 PM
From: Noor Jarrar
Subject: Cost of Capital
For The purposes of calculating WACC, Cost of debt must be calculated. What interest rate should be included? Is it stated interest or yield (market interest) and why?
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Noor Jarrar
Student
Amman
Jordan
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