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标题: What's the difference btw [打印本页]

作者: bigredhockey55 时间: 2011-7-13 13:06 标题: 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.

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