From time to time the federal government considers passing into law an excess profits tax on U.S.

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From time to time the federal government considers passing into law an excess profits tax on U.S. corporations. Given what you know about efficient markets and the CAPM, how would you define excess profits? What would be the effect of an excess profits tax on the investor?
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Financial Theory and Corporate Policy

ISBN: 978-0321127211

4th edition

Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri

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