debt

(redirected from Cost of debt)
Also found in: Dictionary, Thesaurus, Legal, Financial, Acronyms, Encyclopedia.
Related to Cost of debt: Cost of equity

debt

 [det]
something owed.
oxygen debt the extra oxygen that must be used in the oxidative energy processes after a period of strenuous exercise to reconvert lactic acid to glucose and decomposed ATP and creatine phosphate to their original states.

debt

(det),
A deficit; a liability.
[L. debitum, debt]

debt

That which one owes to another; a financial obligation. See Medical student debt.

debt

(det)
A deficit; a liability.
[L. debitum, debt]

debt

(det)
A deficit, a liability, or obligation.
[L. debitum, debt]
References in periodicals archive ?
- average cash cost of debt for FY19-FY23 at 4.3% for ENW and 4.2% for NWEN;
The cost of debt of trade in Serbia ranged from 3,96% (2013) up to 8,51% (2008) in the given period.
But if you were presented with its elements, particularly the beta of debt, you'd be able to extrapolate a simplified variant of the cost of debt. Logically, the beta of debt will be much lower than the associated beta of shares, as debt is inherently lower-risk given its prior charge characteristics.
We find that family ownership is associated with a lower cost of debt financing.
Whereas, null hypothesis [H.sub.015] was rejected and it was concluded that Cost of Debt produced significant impact on Short Term Debt.
In the table on the following page, we assume the cost of debt rises to 10% and the ROC stays the same (at 10%).
As the benefit functions shift and the cost function remains steady, the location of the cost-of-debt function is inferred as what the marginal cost of debt must be in order to rationalize the typical firm's capital structure choices.
While the cost of debt is fairly easy to understand, it's expressed as the rate of interest the company pays for its long-term debt; the cost of equity is a bit more complicated.
An empirical paper by Crabbe and Helwege (1994) fails to support reduction in the agency cost of debt due to a call feature.
I had mentioned that the cost of debt (interest rates) was typically in the range of four per cent to eight per cent for most mid-sized companies in Central Europe, denominated in euro, and the cost of equity (internal rate of return) required by most private equity investors, was in the range of 25 per cent or higher.