When Calculating Economic Profit Using the 'Performance Spread' Method, the Invested

question 1

Multiple Choice

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?

• A) Return on capital + WACC
• B) WACC - Return on capital
• C) Entity value - WACC
• D) Return on capital - WACC

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Definitions:

Chronic Glomerular Nephritis

A long-standing inflammation of the glomeruli, the filtering units of the kidney, which can lead to kidney failure.

Pathology

The study of diseases, their causes, processes, development, and consequences, often involving the examination of tissues, organs, bodily fluids, and autopsies.

Anorexia

An eating disorder characterized by an obsessive fear of gaining weight, leading to severe restriction of food intake.

Chronic Glomerular Nephritis

A long-term kidney condition characterized by inflammation and damage to the glomeruli, which are the filtering units of the kidney.