Cost of Equity Capital & Cost of Debt capital

tanka · #1 Dec 9, 2007, 03:22 PM

Hello everyone,

Can you explain me why the cost of equity capital almost always or theoretically should exceed the cost of debt capital?

Thanks,
Tanka

Ren Radio · Dec 10, 2007, 03:12 AM

Quote:

Originally Posted by tanka

Hello everyone,

Can you explain me why the cost of equity capital almost always or theoretically should exceed the cost of debt capital?

Thanks,
Tanka

Every investor wants to see skin in the game. Period.



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