Data Update 8 for 2025: Debt, Taxes and Default - An Unholy Trifecta!
Musings on Markets
FEBRUARY 23, 2025
The Debt Trade off As a prelude to examining the debt and equity tradeoff, it is best to first nail down what distinguishes the two sources of capital. That is where the cost of capital, the Swiss Army Knife of finance that I wrote about in my sixth data update update , comes into play as a debt optimizing tool.
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