FMG 0.91% $17.96 fortescue ltd

if you studied finance you would know that the after tax cost of...

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    if you studied finance you would know that the after tax cost of debt is considerable less than the cost of equity given the tax deductibility of interest as a business expense. The costs of debt only increase when the firm is too heavily leveraged and the cost of default gets incorporated into the higher cost of interest. Furthermore, with interest rates where they are today it makes zero sense to pay off debt early. in fact, in an inflationary world, paying back debt with depreciated dollars provides a huge windfall for the firm.

    No disrespect mate but if you have no fundamental basis for the things you say you just end up my like an idiot.

    not financial advice. Do your own research etc etc…


    Last edited by MadDog12: 06/09/21
 
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