Author Question: When there is an excess of expected net income over the cost of capital A) abnormal net income is ... (Read 210 times)

amal · **on:** Jun 30, 2018

When there is an excess of expected net income over the cost of capital
A) abnormal net income is positive.
B) accounting profits are negative.
C) abnormal net income is negative.
D) economic profits minus abnormal net income is negative.

Question 2

Stock prices change when.
A) expectations are based on past performance
B) expectations change.
C) accounting profits are zero.
D) none of these choices.