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

REPLACEMENT RESERVE FUND, in real estate, is a fund set aside for replacement of common property in a condominium, PUD, or cooperative project; particularly that which has a short life expectancy, such as carpeting and furniture.

DEVIATION is the departure from prescribed internal control. Often expressed as a rate at which the departure occurs.

Suggest a Term

Enter Search Term

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