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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

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

D

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