26. Return on capital (S29.2) Sometimes analysts use the average of capital at the start and end...

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26. Return on capital (S29.2) 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. (Hint: Start by assuming that capital increases solely as a result of retained earnings.)

Chapter 29 Financial Analysis 855

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