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Economic Profit and Valuation Concepts

Authored by Keertana Gunti

Business

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Economic Profit and Valuation Concepts
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10 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is not a time period in a valuation model?

Planning Period

Historical Period

Budget Period

Terminal

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

TSRs are the best external measure of performance for the company as a whole

True

False

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the final calculation to get to economic profit?

EBIT - WACC

WACC * Total Capital

EBIT - Capital Charge

NOPAT - Capital Charge

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is an example of non-tangible capital?

Patents

Machinery

Inventory

Buildings

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A business generating positive cash flow must be creating value

True

False

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Economic profit margins are consistent across industries

True

False

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A governing objective should NOT be...

A single stand-alone goal

Easily quantifiable

Short-term focused

Closely linked between internal and external objectives

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