标题: How to calculate Cost of Debt?? [打印本页] 作者: lxwarr30 时间: 2011-7-11 17:30 标题: How to calculate Cost of Debt??
Page:63 (CFA book vol 4 , example 11) -> Bayern Chemicals' cost to debt has an estimated spread of 225 basis points over the 10 year bund ( i guess its bond)!
and solution shows:
The before-tax cost of debt of Bayern Chemicals (rd)is 6.75 %
rd=4.5% + 2.25% = 6.75
I am totally confused how they got this value, can somebody help me understand this calculation of Cost of Debt?
