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Financial management long term debt

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(Querist)
25 August 2024 why long term debt is included in cost of capital when long term debt is considered as external liability?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
27 August 2024 Long term debt is used for capital investment so it's interest is included in cost of capital.
It's borrowing from outside hence it's considered as external liability.
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