Question: Part A (2 marks) Based on the most recent balance sheet, Susan identifies the total debt for the company is $8m million. The total interest

Part A (2 marks) Based on the most recent balance

Part A (2 marks) Based on the most recent balance sheet, Susan identifies the total debt for the company is $8m million. The total interest payment for the coming year will be about $1 million. Susan then argues that "We owe $8 million, and we will pay $1 million interest. Therefore, our cost of debt is 12.5% ($1 million/$8 million)". What's wrong with this conclusion

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