I can understand why the analyst adds back interest expense to net income in the numerator of

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I can understand why the analyst adds back interest expense to net income in the numerator of the rate of return on assets but I don’t see why an adjustment is made for income taxes provide an explanation.

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Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

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Question Posted: Dec 03, 2011 03:27 AM

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I can understand why the analyst adds back interest expense to net income in the numerator of

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The adjustment in the numerator of rate of return on assets is for the increm...View the full answer

Financial Accounting an introduction to concepts, methods and uses

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