When estimating the cost of debt capital for the firm, we are primarily interested in

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We are primarily interested in the cost of long-term debt because it represents a more stable and consistent source of financing for the company. Short-term debt may be subject to fluctuations in interest rates and can also potentially increase the company's risk. The coupon rate of the debt is only one component of the cost of debt capital and does not necessarily reflect the full cost to the firm.

When Estimating the Cost of Debt Capital for the Firm