Finally, Proof That Managing for the Long Term Pays Off
Harvard Business Review
FEBRUARY 7, 2017
.” Economic profit represents a company’s profit after subtracting a charge for the capital that the firm has invested (working capital, fixed assets, goodwill). Consider, for example, Company A, which earns $100 of after-tax operating profit, has an 8% cost of capital and $800 of invested capital.
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