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📊💸 Cost of Capital vs. Return on Assets (ROA) 💸📊 Understanding the relationship between Cost of Capital and Return on Assets (ROA) is crucial for any business! Here’s a quick breakdown: Cost of Capital: This is the rate of return a company needs to earn to satisfy its investors, including debt and equity. It reflects the risk of investing in the business. Return on Assets (ROA): ROA measures how effectively a company uses its assets to generate profit. It’s calculated by dividing net income
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