Managerial Economics Class Discussion wk 11

Managerial Economics Class Discussion wk 11

Graded Activity: Class Discussion (25 points)
Instructional Objectives for this activity:
Distinguish between economic and accounting profit
One of the reasons economists and managers want to understand a companys economic profit is to determine the market value of a company. Understanding a companys value is important for many reasons, one of which is to determine the companys cost of capital. Why is determining a companys cost of capital important? Consider this in the following discussion.

Review the opening case Considering the Cost of Capital, on page 312. Use the information from Chapter 19 to answer the following questions.

Please respond to all of the following prompts in the class discussion section of your online course:

What is the best way to measure a firms performance? Explain your reasoning.
Why do managers need to understand the difference between economic profit and accounting profit? Provide an example of economic vs. accounting profit from your own experience.
The minimum expectation for class discussions is to respond directly to each part of the discussion prompt and to respond to at least five other posts, either by a student or instructor, by the end of the week:

Submit one main post responding directly to each part of the discussion prompt.
This should be a substantive response to the topic(s) in your own words, referencing what you have discovered in your required reading and other learning activities.
For citation guidelines, please refer to the table in the APA Style section of the syllabus
Added on 08.01.2015 16:41
yOU WILL HAVE TO GO TO CCIONLINE.COM, DChamberlain689, Shinkshink28, courses, get the questions that need to be answered


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