For a private comapny
This query is : Resolved
10 January 2008
1. Normal rate of return =
Avg Profit/Avg Capital emplyed
2. Growth rate= you can find out growth on yearly basis based on the growth in net worth of the company
yearly growth = (Net worth at the end of the year -net woerh begning of the year )/ Net worth at the begning of the year.
3 For cost of capital you have to provde us the detail about capital structure of the coampany.
Avg Profit/Avg Capital emplyed
2. Growth rate= you can find out growth on yearly basis based on the growth in net worth of the company
yearly growth = (Net worth at the end of the year -net woerh begning of the year )/ Net worth at the begning of the year.
3 For cost of capital you have to provde us the detail about capital structure of the coampany.
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