If the return on capital is equal to the cost of capital
A) accounting profits are zero.
B) economic profits are negative.
C) accounting profit and economic profit are equal.
D) economic profits are zero.
Correct Answer:
Verified
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
Q16: With free entry
A)economic profits are possible over
Q17: The financial statement that shows how revenue
Q18: Economic profit equals
A)net operating profit after taxes
Q19: The objective of creating value is the
Q20: Normal profit
A)is when economic profits are zero.
B)is
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