Why capitalized interest from construction in progress is added back for adjusted interest expense but not adjusted EBIT?
There’s no adjustment to make to EBIT. EBIT’s before interest, and there’s no depreciation because the construction is in progress.
On a different topic, if converting a lease from operating lease to capitalized lease, why we calculate the new interest expense as total finance lease * discount rate + original lease, I might have forgotten something basic but not sure why we treat the depreciation as interest…
Please make a new thread for this topic, so that this thread doesn’t get derailed.