If you use it, it gives you a better view of your return on investment, and it helps you decide how to finance future projects. You see in the formula the cost of equity verses the cost of loans (adjusted for tax-deductible interest). Companies can also compare their Moody’s or S&P bond ratings to see if it’s worth while to make a bond offering.
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If you use it, it gives you a better view of your return on investment, and it helps you decide how to finance future projects. You see in the formula the cost of equity verses the cost of loans (adjusted for tax-deductible interest). Companies can also compare their Moody’s or S&P bond ratings to see if it’s worth while to make a bond offering.
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