Calculating Market Value of Debt

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The Market Value of Debt refers to the market price investors would be willing to buy a company’s debt at, which differs from the book value on the balance sheet.

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How do we get the current cost of debt? Is it the average yield of the debt?
Thanks, great video.

JonesDawg
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It's not quite explaining but rather straight applying a formula. I wish there was an explanation.

lizimoodyspecter
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Should after tax cost of debt be used? or should it be before tax cost of debt?

ruiminglim
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can someone explain this section of the formula better - it is not explain in the article either. (1 – (1/((1 + .038)^8.94)))/.038]

javierloa