The Abnormal Net Income Model Defines the Market Value of a Firm

Multiple Choice

The abnormal net income model defines the market value of a firm

A) is its book value minus the present value of expected economic profits.
B) is its book value plus the present value of expected economic profits.
C) is its book value divided by the present value of expected economic profits.
D) is its book value multiplied by the present value of expected economic profits.