What is typically higher – the cost of debt or the cost of equity?
1 Answer(s)
Bhupendra Singh
The cost of equity is higher than cost of debt, because when we sell equity we are are also selling a share of our future performance. and this may amount much more than interest that a creditor will charge us. In debt profit remain in the company while in equity we distribute the profit.
Mar 08 2014 09:39 PM