Which of the Following Best Defines the Term Economic Value

question 334

Multiple Choice

Which of the following best defines the term economic value added (EVA) ?

• A) The weighted average of the costs of debt and equity.
• B) Net income after interest and taxes divided by average common shareholders' equity.
• C) Use of a WACC that is unique to a particular project.
• D) Performance measure based on WACC.
• E) Base case net present value of a project's operating cash flows plus present value of any financing benefits.

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Definitions:

Problem Solving

The process of identifying a problem, developing possible solutions, and then implementing a solution to address the issue.

Triangulation

In psychology, the process of involving a third party in a relationship or conflict to ease tension or for manipulation; in research, the use of multiple methods or data sources to develop a comprehensive understanding of a phenomenon.

Goodwill Messages

Communications that express thanks, appreciation, or congratulations, often meant to build relationships or enhance goodwill.

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A version of a traditional press release that is formatted for the web, containing multimedia elements and links, and designed to be shared across social media platforms.