Sir, cost to company is Kd multiply by (1-t) na? and Kd is return to investors.
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Cost to company
2) Sir,in case of irredeemable debt if question says calculate cost of debt, then it is Kd or is it Kd(1-T)?
3) In case of redeemable debt if question says calculate cost of debt, then it is IRR? and in WACC formula whole, for a redeemable debt, whole term Kd(1-T) will be replaced by IRR?
8y ago#2Kd is the return to investors.
For irredeemable debt, the cost of debt is Kd(1-t).
For redeemable debt, the cost of debt is the IRR of the after-tax flows.
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