INVESTED CAPITAL Definition

Bookmark and Share

INVESTED CAPITAL is the sum of equity and debt in a business enterprise. Debt is typically a) long-term liabilities or b) the sum of short-term interest-bearing debt and long-term liabilities. When the term is used, it should be supplemented by a definition of exactly what it means in the given valuation context.

Learn new Accounting Terms

EFFECTIVE DATE OF INTEREST is the market rate at time of a debt issue.

NORMAL RATE OF RETURN, for individuals, is the average rate of return on all investments, i.e. the average of all returns yields the normal rate of return. For capital investments for businesses, it is the profit relative to capital investment.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.