Schweser practice exam Q (PEI M)

CFA Level I
#1

All, quick Q about one of the questions in the practice exam book. Practice exam morning session Q50. I thought ROA was: (Net Income + Interest Expense)/Assets Why do they only do Net income/assets ? thanks best wishes, paul urhq.com

#2

how does interest expense relate to assets?

#3

I always thought ROA was NI/Assets… Return on Total Capital is NI+interest expense/Total capital…

#4

also , total capital = assets? right?

#5

i thought return on assets and return on total capital were the same thing… non? paul urhq.com

#6

http://www.analystforum.com/phorums/read.php?11,631844,631959