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 :
- GST ewaybill closure and Bill to ship to GST numbe
- TDS ON PARNTER INTEREST
- Share important chapters of ca inter costing
- Free CA Foundation Study Material - PYQs with Sugg
- INCOME TAX
- Moving from old to new tax regime after notice
- Need urgent help on notice
- ITR-3 - F&O Loss adjusted against business inc
- Error - Blank Rows in Schedule SI (ITR-2)
- Dividend from co-operative society
Related Topics :
CAclubindia
