What is the Cost of Debt?
Therefore, we took the 1.2% spread from Damodaran’s current chart and added it to the U.S. Risk-Free Rate of 4.2% at the time of this valuation to get a Pre-Tax Cost of Debt of 5.4%. If the company you’re valuing does not disclose the “fair value” or “fair market value” of its Debt, you have…