What is economic profit framework

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Reference no: EM132908926

Question 1: What is Economic Profit Framework?

Question 2: How can the Economic Profit Framework be used to increase ROE (Return on Equity), reduce the increased debt and adds value to the firm? (Explain briefly.)

Question 3: Why does the forecasted AE (Abnormal Earnings) equals to zero when the transactions are recorded at market value?

Question 4: How does Restating a firm's financial statements help in separating abnormal earnings into AE relating to Operations and AE relating to financial activities? (Explain briefly)

Reference no: EM132908926

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