Economic profit equals
A) net operating profit after taxes plus the cost of capital.
B) net operating profit after taxes divided by the cost of capital.
C) net operating profit after taxes multiplied by the cost of capital.
D) net operating profit after taxes minus the cost of capital.
Correct Answer:
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Q13: Economic profit equals
A)accounting profit plus the cost
Q14: Exit from a market will stop when
A)accounting
Q15: If the return on capital is equal
Q16: With free entry
A)economic profits are possible over
Q17: The financial statement that shows how revenue
Q19: The objective of creating value is the
Q20: Normal profit
A)is when economic profits are zero.
B)is
Q21: The speed at which abnormal net income
Q22: Normal profit and the cost of capital
Q23: A focus on economic profit
A)will change the
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