Finance / May 21, 2018 / Hanna Hunt
You would see that in calculating earnings per share also we take weighted average of outstanding shares. But the basic difference between the dividends per share and earnings per share is what we put in the numerator.
The cost of debt is the cost that the company needs to pay its debt providers to keep them happy it is the return that a company needs to provide to its debt holders. This return rewards the lenders for the risk that they are exposed to, so the cost of debt will vary from one type of debt to another.
There are two basic parts to the cost of a car loan the principal and the interest. The principal is the negotiated cost of the vehicle itself. The interest refers to the total amount of the costs accrued over the life of the loan based on the principal amount and the stated interest rate.
A car loan is pretty much what you think it is It is a personal loan, the proceeds of which are used to purchase an automobile. More specifically, a lender loans the borrower (you) the cash it takes to purchase a vehicle. In return, the borrower agrees to pay back the lender the amount of the loan plus interest, usually in monthly payments, until the amount owed is fully paid off. Pretty simple, so far.
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