Is the relevant cost of debt, when calculating the WACC, the interest rate on already outstanding debt

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Is the relevant cost of debt, when calculating the WACC, the interest rate on already outstanding debt or the rate on new debt? Why?

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Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Question Posted: Mar 10, 2024 12:02 AM

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Is the relevant cost of debt, when calculating the WACC, the interest rate on already outstanding debt

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Intermediate Financial Management

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