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24. Briefly distinguish between accounting and economic costs and provide an example of each cost type. Also, how much economic profits did JPMorgan (JPM) earn
24. Briefly distinguish between accounting and economic costs and provide an example of each cost type. Also, how much economic profits did JPMorgan (JPM) earn in its latest full calendar year? Hint: Think about the opportunity costs of capital for JPM. You will also need to approximate JPM's equity cost of capital (ke). Hint #2: Use CAPM to estimate Ke.
Accounting cost and example
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