Last updated: 

Is cost of debt cheaper than cost of equity for a business?

Which would be cheaper for a business between cost of debt and cost of equity?

User comments

  • user image

    No Name

    Customarily, it should be the cost of debt as debt holders have less default risk than shareholders being that they are more senior as regards being claimants of the business. The business can further benefit from an interest tax shield because interest is in most cases, tax deductible, which lowers the "actual" interest expense before you get to net income

    2019.08.01 18:0

Please leave your knowledge and opinion!

Related Forums


Selling a product for a very high price


Is there a way to make unlimited money online?


I damaged somthing at the mall but I didn't mean it.


Missing item


As a foreigner in this country I want to try shopping local goods.


Can PWD ID used for shopping?