Pure economic profit on rate of return

Owners of corporate stock obtain pure economic profit only to the extent which the rates of return realized by owning the stock exceed the: (1) interest rate that would have been produced by other investments entailing similar risks. (2) instant gratification available by not delaying consumption. (3) funds saved through taking advantage of tax loopholes. (4) discount rate offered by exchange rate depreciation. (5) rate of arbitrage available into real estate investments.

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