Question: Show that you understood the basic concepts behind value based management: (1) Explain the difference between the book value and the economic value of a

Show that you understood the basic concepts behind value based management: (1) Explain the difference between the book value and the economic value of a company.-Why are they normally different? (2) Explain the difference between accounting profit and EVA (economic value added). (3) Explain why high-tech companies have to calculate with higher capital costs (weighted average cost of capital) than traditional utilities

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