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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Principles of Corporate Finance

ISBN: 978-0077404895

10th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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Question Posted: Dec 31, 2012 09:53 AM

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Sometimes analysts use the average of capital at the start and end of the year to calculate

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Recall that return on capital ROC equals the total profits earned for debt and equ...View the full answer

Principles of Corporate Finance

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