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HomeFinanceAnnual Holding Cost FormulaInventory Management Economic Order Quantity Annual Holding Formula Attachments What Eoq Calculations Days Hand Reorder Average Level Calculation Model Fixed Optimal Calculator

Inventory Management Economic Order Quantity Annual Holding Formula Attachments What Eoq Calculations Days Hand Reorder Average Level Calculation Model Fixed Optimal Calculator

Finance / July 19, 2018 / Andi Barnett

Inventory Management Economic Order Quantity Annual Holding Formula Attachments What Eoq Calculations Days Hand Reorder Average Level Calculation Model Fixed Optimal Calculator Finance Cost

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The cost of debt is the monetary price of servicing the interest and principal payments of obligations used to raise capital for a company. In other words, it’s the price companies pay to acquire and keep debt.

In the real world, simple interest is rarely used. When you deposit money into an interest-bearing account, or take out a line of credit, the interest that accumulates is added to the principal, and the next interest calculation is done on both the principal and the interest.

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