Is Return on Capital (ROC) affected by changes in debt
What happens to ROC if you increase debt...I believe it would just stay the same, correct?
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Look at the formula for ROC: http://en.wikipedia.org/wiki/Return_on_capital
If the denominator is going up and all else remains equal, you're naturally going to have a lower ROC.
Also... why did you tag this "Goldman Sachs?"
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