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The 2 inputs are As a result the personal debt ratio in total cash and the relevant credit card debt servicing Price tag. The expense of credit card debt for all the divisions of MC is calculated utilizing the below two inputs;

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Utilization of returns can be either arithmetic average or geometric normal but geometric typical is more ideal then arithmetic normal as arithmetic normal is reflecting easy return above a see here time frame on Preliminary expense, no matter the capital acquire from time period to interval. However, geometric typical reveals compound return, that makes stability of expenditure worth of former 12 months a theory foundation for calculation of next yr’s return i.

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