Forum Archive Index - July 2001

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

I don't like leaving unanswered questions, so digging back into the 
archives....
>
> 
> Question: Return on Invested capital(ROIC), is IC the share price
> less = debt?
>
>
No.   The Invested Capital (IC) is all the cash invested in a 
company's business since its inception.  That includes initial 
capital, retained earnings and proceeds from share placements and 
cash issues.

This issue is discussed at length in 'Economic Model V16'. It is an 
excellent 33 page pdf which may be found at:

http://www.geocities.com/andrewychan/index.html

This was the site recently uncovered by Philip Robinson and 
lately added to Gerry's 'Learning To Invest' reference list.
>
> 
> Is this not likely to effect companies such as BCH?
> 
>
If the share price of Baycorp either rises or falls this has no 
effect on the Return on Invested capital as I see it.  But obviously 
share price rises and falls do have an effect on the value of any 
investment. SNOOPY



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