Question
In ROCE disggregation, ROCE = RNOA + (LEV x Spread) where Spread = RNOA - NFR NFR = NFE/ Avg NOA NFE = Interest Expense
In ROCE disggregation, ROCE = RNOA + (LEV x Spread) where
Spread = RNOA - NFR
NFR = NFE/ Avg NOA
NFE = Interest Expense - Investment Return
Please explain what is NFR and NFE and how do they affect the spread. Please give a detailed answer for a thumbs up.
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Personal Finance Turning Money Into Wealth
Authors: Arthur Keown
8th Edition
0134730364, 978-0134730363
