Menu
Cost of debt in case of interest free loan
Hello Experts,
What would be the Cost of debt in case no interest is being serviced on the unsecured loan raised by a private limited company. The said kd needs to be factored into wacc calculations for DCF valuation.
Replies (1)
I(1-40%)= 0. The aggregate of debt is preference share capital+debentures+loans. I’m not sure about unsecured loans. Wacc will decrease due to Kd being zero.
Recent Topics :
- CA FINAL FR FINANCIAL INSTRUMENTS (Ind AS 109) Dou
- 70:30 GST rule for solar EPC: partial scope (struc
- TDS on Redevelopers hardship allowance received no
- Who will take FSSAI AND TRADE LICENSE: owner or te
- E Way Bill in respect of Without Bringing Material
- FAST DS 2026 query
- Consultation
- E-way notices for FY 22-23
- Gst file not created
- Regarding 3CEB query
Related Topics :
CAclubindia
