标题: return on investment [打印本页]

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作者: John10    时间: 2011-7-13 14:25     标题: return on investment

why do we add the aftertax interest expense?

ROI = (NI+ATIE) / (avg LT liabilities + equity)

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作者: NakedPuts2011    时间: 2011-7-13 14:25

Since we are calculating the return from the perspective of both the debt holders and equity holders, we need to include the returns for the debt holders (ATIE) and equity holders (NI).

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