Cost of Debt = Total interest payable / Total Debt * 100
Cost of Debt is the total Cost(interest) that a company is required to pay on the borrowed
money. Cost of debt refers to the effective rate a company pays on its current debt.
Cost of Equity = CAPM AND DIVIDEND GROWTH MODEL
Cost of equity refers to a shareholder’s required rate of return on an equity investment. It
is the rate of return that could have been earned by putting the same money into a
different investment with equal risk.