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Which bear more cost of finance? 01. Ke (cost of equity) 02. Kd (cost of debt) which one is Best ?

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Question ajoutée par Mrinal Deb , Manager - Finance and Accounts , Comfort Diagnostic & Nursing Home
Date de publication: 2015/03/12
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par Utilisateur supprimé

Ke (cost of equity) bear more cost in finance.

 

Kd is good for a country which requires the corporayes to pay tax as the tactax shied on interest is available as a deductible expense when arriving at profit. However high cost of debt increase gearing and ultimately the ke.

 

For non tax paying countries  the cost of equity is the best

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