Will below two formula for RI get the same result?
-
Net Income- (equity capital * cost of equity)
-
EBIT (1-t) - (total capital * WACC%)
My understanding is yes, but my number says no…Please advise. Thanks.
Will below two formula for RI get the same result?
Net Income- (equity capital * cost of equity)
EBIT (1-t) - (total capital * WACC%)
My understanding is yes, but my number says no…Please advise. Thanks.