If the return on capital is less than the cost of capital
A) economic profits are zero.
B) accounting profits are zero.
C) then accounting profits minus economic profit are zero.
D) economic profits are negative.
Correct Answer:
Verified
Q7: Economic profit equals
A)NOPAT less capital charges.
B)NOPAT plus
Q8: The cost of debt can be found
Q9: Economic profit is
A)revenue - variable costs +
Q10: The equity premium is the return
A)investors expect
Q11: The abnormal net income model defines the
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
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