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In this article, we’ll cover the basics of what a discount rate is and where it’s used. In this article, we cover the latter. Cost of Debt (Rd): The cost of debt refers to the effective interest rate that a company pays on its debt, such as bonds, loans, or other forms of borrowing.
Debtfinancing is much more common, and the GE firm is often the first institutional investor. Most of this guide deals with the “late-stage VC” strategy, as dozens of other articles cover private equity strategies such as leveraged buyouts and traditional private equity. based firms.
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