cost of debt capital

Definition

The interest rate a company is paying on all of its debt, such as loans and bonds.

Use this term in a sentence

Because we could not negotiate a decrease in the cost of debt capital with the bank, the company went under.

​ Was this Helpful? YES  NO 7 people found this helpful.

You should try to make sure that you know what your cost of debt capital will be before you take on any loan.

​ Was this Helpful? YES  NO 4 people found this helpful.

The cost of debt capital was substantial so we had suggested that the company consider equity financing to improve its financial health.

​ Was this Helpful? YES  NO 7 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
cost of carry cost of delay