Hi can anyone tell me What is the difference b/w Actual capital and capital employed
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Capital employed
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Actual Capital = Capital Invested
whereas
Capital Employed = Net Assets + Shareholders funds
Actual capital means share capital (equity+pref)+security premium
but capital Employed means total assets -non trading investment- misc. expenses not written off- all liabilities (short+long)+ proposed dividend(equity+pref)
but capital Employed means total assets -non trading investment- misc. expenses not written off- all liabilities (short+long)+ proposed dividend(equity+pref)
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