What's the difference btw
What's the diff btw Economic Profit and Residual Income? I always mix them up, and I just got a very simple question wrong and I'm pissed!
So Economic Profit = [EBIT *(1 - Tax Rate)] - $WACC
Residual Income = [NI - (Cost of Equity * Book Value)]
Formula correct?
Any easier way to remember the difference btw them? And also in terms of the formula for each. |
发表于 2011-7-13 13:06
|