Mr Ros hopes to improve on many recent efforts to measure a firm's return over and above its weighted cost of capital.
It would need to nearly triple this ROIC to exceed its weighted average cost of capital ( WACC) of 8.2%.
It would need to double this to cover its 8% weighted average cost of capital ( WACC) and start earning positive economic profits.
It has made negative economic earnings (meaning its return on invested capital has been lower than its weighted average cost of capital) every year going back to 1998 when my model begins.
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With a nod toward recognizing the importance of education, performance was weighted twice against cost.
Meanwhile, American firms are weighted down under the unwieldy cost of providing insurance benefits for employees.
Traditional capitalization-weighted index funds are lower cost, while alternative indexes often have higher exposures to size and value factors.
Using the Goldman Sachs Commodities Index as a proxy for the costs of mining (because it is heavily weighted towards industrial commodities), the real cost of mining gold jumped by nearly 50% during this period, explaining why gold stocks did not provide the leverage that gold investors expected.
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Tax burdens can vary by industry, the underlying cost of doing business and by how the taxes are weighted.
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For the full year, the consultancy forecasts that weighted price of a basket of platinum group metals in the country will be above the weighed cash cost.
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