Abstract
The purpose of this study is to investigate the relationship between the cost of the debt and financial leverage. For this purpose, 46 out of 53 food service companies were selected and their research results were confirmed. First, while the cost of the debt is measured by a fractional ranks variable, the actual cost of other capital varies from 0.0% to 18.4%. The financial leverage is negative (-), which is the result of the cost of the debt being larger than operating profit. Second, correlation and regression analysis showed that all items were statistically significant. In particular, the firm size was positive in the analysis. In general, the larger the size of a company, the lower the cost of capital due to the economies of scale. This result of the foodservice company could be interpreted as a result of the characteristics of the small-sized company and the popularity-oriented management. However, it had been commonly found that there was an influence between the cost of the debt and financial leverage. These results showed that the present financial leverage of the company, which is measured by the risk of the firm, affects the procurement of cost of the debt in the future
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