Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1)
When calculating economic profit using the ‘performance spread’ method, the invested capital is
subtracted from the performance spread to economic profit. Which of the following shows how
performance spread is calculated?
1)
A)
Return on capital + WACC
B)
WACC – Return on capital
C)
Entity value – WACC
D)
Return on capital – WACC
1
Answer Key
Testname: C9