The EBIT-EPS approach to capital structure is a tool businesses use to determine the best ratio of debt and equity that should be used to finance the business' assets and operations. At its core, the ...

Interest expense, net income, and EBIT are three related financial metrics that all have to do with the profitability of a company. Here's what you need to know about calculating each one, and how ...

ROCE includes both debt and equity, offering a comprehensive investment metric. ROCE is calculated as EBIT divided by (Total Assets - Current Liabilities). Comparing ROCE with industry peers helps ...

Journal of Financial Education, Vol. 29 (FALL 2003), pp. 55-71 (17 pages) The cost of capital has been identified as one of the most important financial concepts. However, for some finance students, ...

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. David Kindness is a Certified Public Accountant (CPA) and an expert ...