What is typically higher – the cost of debt or the cost of equity?

The cost of debt is higher, because the cost of debt impacts the cost of equity.  At least this is in the United States.  For example, if you have outstanding debt, that lowers your credit score, which thereby increases your risk to the lender.  So you wind up paying more for loan or credit.  

The cost of equity is always higher than the cost of Debt as you have recognized that the return on Equity is greater than the return on Debt. That why the equity fund gives you higher return than Debt fund. As the cost of equity is higher we used to take loan ie the Debt and invest in the Capital Market

Interest on divident is a fixed cost which companies break even point . on the other it provide tax benefit but companies that to leveraged that large no of debt then equity often find it difficult to grow because of high cost of servicing debt.

• The cost of equity is higher than the cost of debt because the cost associated with borrowing debt (interest expense) is tax deductible, creating a tax shield. Additionally, the cost of equity is typically higher because unlike lenders, equity investors are not guaranteed fixed payments, and are last in line at liquidation.