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When calculating return on net operating assets analysts sometimes make adjustments to the net operating asset base used in the denominator or the ratio. Three
When calculating return on net operating assets analysts sometimes make adjustments to the net operating asset base used in the denominator or the ratio. Three possible adjustments are listed below. Explain what these adjustments are, and discuss the merits of these adjustments.
Non-operating asset adjustment.
Intangible asset adjustment.
Accumulated depreciation adjustment
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Certainly Lets discuss each of the adjustments to the net operating asset base and their merits Nonoperating Asset Adjustment Explanation The nonoperating asset adjustment involves excluding nonoperat...Get Instant Access to Expert-Tailored Solutions
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