COST OF DEBT Definition

Bookmark and Share

COST OF DEBT is interest rate times 1 minus the marginal tax rate (because interest is a tax deduction). An increase in the tax rate decreases the cost of debt.

Learn new Accounting Terms

ACTUAL CASH VALUE (ACV) is the common method of determining the amount of reimbursement for a loss. Normally calculated by determining what it will cost to replace an item at the time of loss after subtracting depreciation.

TIC is Total Invested Capital.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.