Which of the following typically have a positive relationship with economic profit?
I.Growth.
II.RONIC.
III.WACC.
IV.NOPLAT.
A)I and II only.
B)I,II,and IV only.
C)I,III,and IV only.
D)II,III,and IV only.

Question

Quizplus · Accepted Answer

I. Growth typically leads to an increase in economic profit as it can lead to increased revenue and cost efficiencies. 
II. RONIC (Return on Net Invested Capital) is a measure of profitability that takes into account the amount of capital invested. A higher RONIC typically leads to higher economic profit. 
III. WACC (Weighted Average Cost of Capital) is a measure of the cost of financing a company's operations. A lower WACC can lead to higher economic profit. 
IV. NOPLAT (Net Operating Profit Less Adjusted Taxes) measures a company's operating profit after taxes. A higher NOPLAT can lead to higher economic profit.

Which of the Following Typically Have a Positive Relationship with Economic