Total capital = net working capital + net fixed assets = book value of long-term debt + book value of equity
Invested capital = total capital?? = Operating Assets - Operating Liabilities
Total invested capital = market value of equity + market value of debt (+ market value of preferred shares)
Enterprise value = TIC - Cash&Investments
Do I get the definitions right here? Why is TIC based on BV whereas TC is based on MV? Are total capital and invested capital used interchangeably?
Thanks for clearifying!