Required Return of Debt Definition & Application Wiki

Required Return of Debt Definition & Application Wiki

Last Updated by WikiWealth

Required Return on Debt Data

Short Definition

The required return on debt (cost of debt) capital required by the investor. Wikiwealth uses a return equal to the debt rating of the individual firm and competitors. Large, diverse companies generally have a BBB debt rating. If all the competitors have a significantly different debt rating, we'll use a different required return on debt.

Long Definition

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Source: http://en.wikipedia.org/wiki/Cost_of_capital