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Profitability and company finance a supplementary note
Quarterly Bulletin 1979 Q2
Published on
01 June 1979
This note presents revised and updated estimates of company profitability and the cost of capital. Measures are shown of the rate of return both on trading assets and on the shareholders' (or equity) interest; and further material is presented on the significance of gearing-the ratio of debt finance to total assets-in the computation of the return on the equity interest.