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标题: Band of Investment Method [打印本页]

作者: SkipE99    时间: 2011-7-11 19:50     标题: Band of Investment Method

Question: Why do I have to include in the cost of debt also the sinking factor and not just the interest rate, as is done in the WACC (there I also include the tax effect)?

Many thanks.
作者: 19831985    时间: 2011-7-11 19:50

Thecodont Wrote:
-------------------------------------------------------
> By the way, the sinking fund factor is to reflect
> that fact that the debt is amortizing. Everywhere
> else it is assumed to be bond debt so only int is
> paid

[ ] bad
[ ] good
[x] perfect




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