Cost of Debt (CoD)
Also called CoD
The Cost of Debt (CoD) is the aggregate interest rate across all loans. You calculate it by putting the total amount of interest over the total amount of debt.
In the room
The half of WACC people neglect. Know that you use the after-tax cost of debt, because interest is tax deductible — that tax shield is a big reason leverage is attractive in an LBO.