Which of the Following Statements Is Most Correct About Economic

question 7

Multiple Choice

Which of the following statements is most correct about Economic Value Added (EVA) ?

• A) If a company has no debt, its EVA equals its net income.
• B) If a company has positive ROE, its EVA must also be positive.
• C) A company's EVA will be positive whenever the cost of equity exceeds the ROE.
• D) All of the statements above are correct.
• E) None of the statements above is correct.

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