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Author Question: The abnormal net income model defines the market value of a firm A) is its book value minus the ... (Read 192 times)

P68T

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on: Jun 30, 2018
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.

Question 2

Normal profit
 A) is when economic profits are zero.
  B) is the profit that competition will allow.
  C) is the opportunity cost of capital.
  D) all of these choices.


mochi09

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

D


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