About this document
Understanding Cost of Capital by Security Bank Personal Loans is a document available to read on EtoBox.
This document discusses the cost of capital and its components. It begins by defining cost of capital and explaining that it includes the cost of debt, preferred shares, and ordinary equity. It then discusses how to calculate: 1) The after-tax cost of debt by taking the interest rate and subtracting taxes. 2) The before-tax cost of a new bond issue using the net proceeds from the bond sale and the present value of future cash flows. 3) The after-tax cost of debt by multiplying the before-tax cost by 1
- Author
- Security Bank Personal Loans
- Language
- EN