Reference no: EM13771393
How does economic profit differ from net income?
A. The major difference is that net income includes a capital charge, that is, a cost of using all capital. In contrast, economic profit includes a charge for using debt capital (interest) but no charge for using equity capital. Some measures of economic profit rely primarily on financial reporting numbers and others, such as EVA, include adjustments such as deducting cash taxes rather than tax expense or capitalizing rather than expensing R&D.
B. The major difference is that net income includes a capital charge, that is, a cost of using all capital. In contrast, economic profit includes a charge for using debt capital (interest) but no charge for using equity capital. Some measures of net income rely primarily on financial reporting numbers and others, such as EVA, include adjustments such as deducting cash taxes rather than tax expense or capitalizing rather than expensing R&D.
c. The major difference is that economic profit includes a capital charge, that is, a cost of using all capital. In contrast, net income includes a charge for using debt capital (interest) but no charge for using equity capital. Some measures of economic profit rely primarily on financial reporting numbers and others, such as EVA, include adjustments such as deducting cash taxes rather than tax expense or capitalizing rather than expensing R&D.
D. The major difference is that economic profit includes a capital charge, that is, a cost of using all capital. In contrast, net income includes a charge for using debt capital (interest) but no charge for using equity capital. Some measures of net income rely primarily on financial reporting numbers and others, such as EVA, include adjustments such as deducting cash taxes rather than tax expense or capitalizing rather than expensing R&D.
|
Brief overview of the board of governors
: Cite the major functions of the district Federal Reserve banks. Brief overview of monetary policy. Brief overview of the Board of Governors.
|
|
Evaluate role of banks in implementation of monetary policy
: Explain how the members of the Board of Governors, members of the Federal Open Market Committee, and the directors of the 12 Federal Reserve Banks are selected. Describe and evaluate the role of banks in the implementation of monetary policy.
|
|
What is the impact of world aggregate supply
: What is the impact of World Aggregate Supply (WAS) on the trade deficit and domestic employment? Referring to the Aggregate Supply and Aggregate Demand model (AS/AD) and the material in Chapter 11 what challenges does structural stagnation pose for m..
|
|
What kind of safety net
: Globalization has pulled hundreds of millions of people out of poverty in China and India. How should that gain be weighed against the structural changes that globalization requires in the United States? Should there be a safety net for those most hu..
|
|
How does economic profit differ from net income
: Some measures of economic profit rely primarily on financial reporting numbers and others, such as EVA, include adjustments such as deducting cash taxes rather than tax expense or capitalizing rather than expensing R&D.
|
|
Define the acm code of ethics and professional conduct''s
: Review the ACM Code of Ethics and Professional Conduct's More Specific Professional Responsibilities sections 2.1 and 2.2
|
|
Acme industrial hygiene consultants
: What was going on during sampling? What was your sampling method? What are your results?
|
|
Find the nominal annual interest rate
: The entire principal of the borrowed amount of $10,000 will be repaid in 2 years. However, the quarterly interest of $330 must be paid every 3 months. Find the nominal annual interest rate that you are paying.
|
|
Find the effective rate of interest
: After one year, your original $200 in savings account became $212.64. Find the effective rate of interest?
|