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    Linda1985's Avatar
    Linda1985 Posts: 1, Reputation: 1
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    #1

    Jun 22, 2012, 06:37 AM
    In what case do cost of debt exeed cost of equity?
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    Can it ever happen that the cost of debt exeeds the cost of equity and if yes, how and when? 
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
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    #2

    Jun 22, 2012, 06:48 AM
    Quote Originally Posted by Linda1985 View Post
    PHP Code:
    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.
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