Total capital = total assets Total capital = total assets + total equity Total capital = total debt + total equity
Also when to use Market Value of the above versus the Book Value? Additional things to clarify for you would be ROIC, MVIC. thanks in advance.
Total Capital = D + E
I believe an example of using BV would be for residual income.
please feel free to correct me if i’m wrong because my brain is fried everything is starting to come together as one topic not sure if that’s good or bad
Total Capital = Total Debt + Total Equity.
Debt = Long term debt + Current Portion of Long term debt + Short term debt.
I think market values only come in place whenever you are calculating Enterprise Value.
Enterprise Value = Market Value of Equity + Market Value of debt + Market Value of preferred shares + Market Value of Minority interests - Cash
Pg 405 of book 2, Q17 is implying that total capital = total assets.