- This topic has 1 reply, 2 voices, and was last updated 11 months ago by John Moffat.
- You must be logged in to reply to this topic.
In calculating the residual income and return on investment, should the opening net asset figure be used for calculating the cost of capital or the closing net asset figure
The opening net assets (on the basis that it is they that are earning the profits for the year). Unless, obviously, the question specifies different.