In making forecasts to estimate the value of a company,at the point where competition has eliminated abnormal returns,then it is appropriate to set RONIC equal to WACC.

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When competition has eliminated abnormal returns, it means the company is operating in a competitive market and earning only a normal rate of return. At this point, the company's return on new invested capital (RONIC) should be equal to its cost of capital or weighted average cost of capital (WACC) to maintain its current value. Therefore, setting RONIC equal to WACC is appropriate in this scenario.

In Making Forecasts to Estimate the Value of a Company,at