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View Full Version : In what case do cost of debt exeed cost of equity?

Linda1985
Jun 22, 2012, 06:37 AM
Can it ever happen that the cost of debt exeeds the cost of equity and if yes, how and when?
smoothy
Jun 22, 2012, 06:48 AM
Can it ever happen that the cost of debt exeeds the cost of equity and if yes, how and when?


When you spend more than you earn by borrowing it.