Economic profit is
A) revenue - variable costs + fixed costs.
B) revenue + variable costs - fixed costs.
C) revenue - variable costs - fixed costs.
D) revenue/cost of capital.
Correct Answer:
Verified
Q4: Entry into a competitive market will continue
Q5: To calculate the cost of capital
A)it needs
Q6: Stock prices change when.
A)expectations are based on
Q7: Economic profit equals
A)NOPAT less capital charges.
B)NOPAT plus
Q8: The cost of debt can be found
Q10: The equity premium is the return
A)investors expect
Q11: The abnormal net income model defines the
Q12: If the return on capital is less
Q13: Economic profit equals
A)accounting profit plus the cost
Q14: Exit from a market will stop when
A)accounting
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