Saturday, May 15, 2010

residual return on capital (RROC)

RROC = EVA/Capital(*)

(*) or total adjusted capital base

EVA = Net Operating Profit After Taxes (NOPAT) - (Capital * Cost of Capital)
= NOPAT - $WACC
= EBIT(1-tax rate) - $WACC
Posted by Unknown at 3:20 PM
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