Cost of debentures, Finance Basics

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Archie

2/14/2013 12:30:25 AM

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.

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