Respuesta :
No. The cost of capital exists not simply the interest paid on long-term debt. The cost of capital stands as a weighted average of the costs of all sources of financing, both debt, and equity.
Who is long-term debt?
Long-term liabilities, often known as long-term debts, are sums owed by a corporation to third parties and are due after 12 months. This sets them apart from current liabilities, which a business must settle within a year. Current liabilities and long-term liabilities both appear on the balance sheet.
Long-term liabilities, also known as non-current liabilities, are obligations that must be met after a year or the company's typical operating period. The length of time it takes a business to convert inventory into cash is known as the normal operation period.
Divided by the total of the value of the common stock, preferred stock, and long-term debt. In the equity portion of the balance sheet, the values of preferred stock and common stock are shown.
No. The cost of capital exists not simply the interest paid on long-term debt. The cost of capital stands as a weighted average of the costs of all sources of financing, both debt, and equity.
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