Cost of Capital Finance GDP 
Harvard Business Review
OCTOBER 25, 2018
To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)
Harvard Business Review
FEBRUARY 7, 2017
GDP over the past decade might well have grown by an additional $1 trillion if the whole economy had performed at the level our long-term stalwarts delivered — and generated more than five million additional jobs over this period. In this case its capital charge is $800 times 8%, or $64. We calculate that U.S.
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