In calculating the EP, the formula is NOPAT - $WACC, $WACC = WACC * Capital.
In this case, would total assets be equivalent to capital? If so, what’s the rationale in justifying total assets as capital?
Thanks in advance!
In calculating the EP, the formula is NOPAT - $WACC, $WACC = WACC * Capital.
In this case, would total assets be equivalent to capital? If so, what’s the rationale in justifying total assets as capital?
Thanks in advance!