Why do analysts care about the current cost of long-term debt when est
QUESTION
Why do analysts care about the current cost of long-term debt when estimating a firms cost of capital?
capital to give a more real view of the cost of capital of the firm. The current cost of long term debt is the cost at which the firms will be able to get more long term debt and is the minimum required return by the investors. The analysis will give help the analysts to ascertain this minimum return.
ANSWER:
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