And if so, how? I think that it could if a company may have "over paid" on interest? But then what would thecost of debtbe in this scenario?
For example, if a company owes $100 on interest for $1000 worth of debt, and if the company paid $110, would the cost of debt be -10/1000?
Thanks!
WSO Virtual BootcampsSee all
Popular ContentSee all
Career Advancement Opportunities
March 2023万博app网页版
Overall Employee Satisfaction
March 2023万博app网页版
Professional Growth Opportunities
March 2023万博app网页版
Total Avg Compensation
March 2023万博app网页版
Career Resources
LeaderboardSee all
| 1 |
|
99.2 |
| 2 |
|
99.0 |
| 3 |
|
99.0 |
| 4 |
|
99.0 |
| 5 |
|
99.0 |
| 6 |
|
98.9 |
| 7 |
|
98.9 |
| 8 |
|
98.9 |
| 9 |
|
98.9 |
| 10 |
|
98.9 |
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Comments (2)
Hahaha, no. What you're calculating is the implied cost of debt, by taking the总利息费用and total expanding debt to get some implied rate.
1. If a firm overpays on interest, the "extra" interest would usually help pay down the principal, but it depends if this si even allowed. Details would be in the debt covenant.
2. The cost of debt for each tranche can never be negative.
"Markets can stay irrational longer than you can stay solvent."
Expedita et quia veritatis aut fugiat. Eos officia natus ut ut culpa incidunt aspernatur. Maiores recusandae ut molestias maxime. Alias et veritatis porro enim corrupti enim. Eius id expedita cumque at animi eos id atque. Ea cum laudantium error beatae.
Qui id consequatur tempore similique. Omnis unde deleniti id voluptatem et libero nihil. Consectetur consequuntur aut tempora voluptas inventore.
Totam harum tempore maxime placeat tempore qui dolores esse. Repellat non omnis ad sit perspiciatis et et non. Inventore sint eligendi consequatur vel ea quasi.
Fugiat sed tempore id delectus labore qui voluptas. Dolores et dolores rem id est vero quo. Minima sapiente esse accusamus repudiandae est dolor.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus:6 financial modeling lessons free($199 value)
orUnlockwith your social account...