Is it acceptable to use interest expense divided by book value of debt outstanding as an estimate

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Is it acceptable to use interest expense divided by book value of debt outstanding as an estimate of cost of debt? Why or why not? Explain explicitly and with examples.

Related Book For answer-question

Applied Statistics From Bivariate Through Multivariate Techniques

ISBN: 978-1412991346

2nd edition

Authors: Rebecca M. Warner

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Posted Date: Mar 14, 2019 10:11 AM

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Is it acceptable to use interest expense divided by book value of debt outstanding as an estimate

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Expert Answer:

Yes that is acceptable because it is very hard to find market value of debt unlik... View the full answer

Applied Statistics From Bivariate Through Multivariate Techniques

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