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    nadiadouala's Avatar
    nadiadouala Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 6, 2008, 08:47 AM
    Weighted average cost of capital
    Hi everyone,
    Please can you tell me if the short term borrowings are included in the calculation of cost of debt, and if they are included in the calculation of Weighted average cost of capital.
    TX
    bhet's Avatar
    bhet Posts: 77, Reputation: 9
    Junior Member
    		  
    #2

    Sep 13, 2008, 05:27 PM
    No. Shert term borrowing are not included. Items that are included in calculating cost of capital are long term debt, common shares, preffernce shares and retained earnings only. That is they are used as a source of financing for their long term assets
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