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ABC Corporation is a publicly traded company. You are trying to estimate how much debt it has outstanding to compute the firms cost of capital.

ABC Corporation is a publicly traded company. You are trying to estimate how much debt it has outstanding to compute the firms cost of capital. Which of the following items should you not include in debt?

  1. Short term borrowings
  2. Long term bank loans
  3. Corporate bonds
  4. Deferred tax liabilities

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