Which of the Following Statements Is Most Correct

question 77

Multiple Choice

Which of the following statements is most correct?

• A) If two firms have the same ROE and the same level of risk, they must also have the same EVA.
• B) If a firm has positive EVA, this implies that its ROE exceeds its cost of equity.
• C) If a firm has positive ROE, this implies that its EVA is also positive.
• D) Statements b and c are correct.
• E) All of the statements above are correct.

---

Definitions:

Dangerous Situation

A scenario or environment that poses a risk of harm or injury to a person or people.

Heart Pounding

The sensation of a rapidly beating heart, often experienced during intense emotion or physical exertion.

Afraid

A feeling of fear or anxiety about a possible or impending situation or event.

Theory of Emotion

A conceptual framework explaining how emotions are generated, including the physiological responses and cognitive processes associated with emotions.