The real cost of debt is equal to interest paid minus any tax deductions on interest paid. The most common method used to calculate cost of equity is the capital asset pricing model or CAPM.

The CAPM formula is: Cost of Equity (CAPM ... This combines the costs of debt and equity to determine a company's overall cost of capital. A lower cost of equity can lead to a lower WACC ...

The real cost of debt is equal to interest paid minus any tax deductions on interest paid. The most common method used to calculate cost of equity is the capital asset pricing model or CAPM.