How to find out the cost of debt for a company with the help of its financial statement?
by admin ~ January 22nd, 2010 . Filed under: Investing .
mlm asked:
The formula is Kd=Interest rate (1- Cor Tax). Now how to get the interest rate from financial statement? The company is not having any bonds. Its either bank borrowings or the preference shares.
Adrian Brunzel
The formula is Kd=Interest rate (1- Cor Tax). Now how to get the interest rate from financial statement? The company is not having any bonds. Its either bank borrowings or the preference shares.
Adrian Brunzel
January 25th, 2010 at 7:43 am
The income statement where it may not preferred dividends not preferred dividends not be in the same.
The balance in the same reason and because there then check the balance in cash flows because there are different methods of cash flow statement in interest expense line item may not there are different methods of cash flows find the latest financial statements it is.
January 25th, 2010 at 7:30 pm
you can also use credit spreads if worse comes to worse.