Multiple Choice
To calculate the cost of capital
A) it needs to know its economic profit.
B) the firm must calculate the average weighted cost of debt.
C) the firm needs to know how much debt it uses.
D) the firm needs to know how much capital is has.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: An increase in revenue causes economic profit
Q15: When there is an excess of expected
Q16: Stock prices change with surprises.
Q17: The abnormal net income model defines the
Q18: Entry into a competitive market will continue
Q20: Economic profit equals NOPAY plus capital charges.
Q21: Capital charges equal the company's invested capital
Q22: Economic profit equals<br>A)NOPAT less capital charges.<br>B)NOPAT plus
Q23: A focus on economic profit<br>A)will change the
Q24: The objective of creating value is the