What Are the Main Elements in Calculating Cost of Capitalhow Would an Increase in Debt Affect It?

Answer

The main elements in calculating cost of capital are cost of debt, equity and preferred stock. An increase in debt will affect your cost capital by requiring a higher cost capital. It could also cost you higher payments for loans because of higher interest rates.
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The main elements in calculating cost of capital are cost of debt, equity and preferred stock. An increase in debt will affect your cost capital by requiring a ...
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