Sometimes analysts use the average of capital at the start and end of the year to calculate
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Sometimes analysts use the average of capital at the start and end of the year to calculate return on capital. Provide some examples to illustrate when this does and does not make sense.
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Recall that return on capital ROC equals the total profits earned for debt and equ...View the full answer
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Related Book For
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
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