income. A common idea is that excess profit is an unequivocalconcept, being the diference between profit and costs, where all … provided gives rise to a diferent way of modelling the notion of excess profit. While the existing models are tied to the …

Two measures of excess profit (residual income) are currently available in the literature: the standard one, of which …

This paper presents an axiomatization of residual income, aka excess profit, and illustrates how it may univocally …-income assets may be constructed on the basis of either theory starting from pre-determined growth rates for excess profit. In … engenders fixed-income or variable-income assets. In the first part it is shown that, depending on the relations between excess …

speaking, they come across the concept of excess profit. The student tells them that the formal way to translate excess profit … mistakes. Consequently, each of them miscalculates the excess profit. Strangely enough, they make different mistakes but both … measuring excess profit, alternative to the standard one (EVA) but equally valuable. As I see it, they are only adopting a …