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The two inputs are Therefore the personal debt ratio in whole cash and also the relevant credit card debt servicing Value. The cost of credit card debt for all of the divisions of MC is calculated using the below two inputs;

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Utilization of returns can be either arithmetic average or geometric ordinary but geometric common is much more suitable then arithmetic ordinary as arithmetic regular is reflecting straightforward return above a timeframe on Preliminary investment decision, no matter the money learn the facts here now obtain from period of time to time period. On the other hand, geometric common reveals compound return, that makes equilibrium of investment worth of prior yr a principle base for calculation of next calendar year’s return i.

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