amartino44
New member
- Joined
- Apr 6, 2015
- Messages
- 13
Hello. There is this equation economic profit = invested capital * (ROIC-WACC)
Since ROIC= NOPLAT/Invested capital, we can say:
Economic Profit= NOPLACT -(Invested Capital *WACC)
I can check that it's correct with numbers but I don't get the math by how they do this. Thanks!!
Since ROIC= NOPLAT/Invested capital, we can say:
Economic Profit= NOPLACT -(Invested Capital *WACC)
I can check that it's correct with numbers but I don't get the math by how they do this. Thanks!!