Why the cost of debt is different from the cost of equity

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Reference no: EM133229367

Question - Debt and Equity Financing Discussion

Description - Your direct manager has asked you to explain why the cost of debt is different from the cost of equity and to differentiate between the real risk-free rate and the nominal risk-free rate of interest.

Describe which interest rate is used to assign value to an asset.

In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.

Discuss with fellow students how they arrived at their particular answer.

Reference no: EM133229367

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