Write an important condition for the adjustment of the cost of debt.

3 years ago
Financial Management

One can adjust the cost of debt only if the EBIT (Earning Before Interest and Taxes) is equal to or more than the interest rate. If, on the other hand, EBIT is less than the interest rate then the actual interest payable becomes the cost of capital effectively.

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Sanisha Maharjan
Sanisha Maharjan
Jan 18, 2022
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