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.

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Definitions:

Marriage Success

The degree to which partners in a marriage feel satisfied, fulfilled, and maintain a functional relationship over time.

Less Likely to Divorce

Refers to couples or situations characterized by factors that statistically reduce the probability of ending a marriage through divorce.

Spiritual

Pertaining to, or affecting the human spirit or soul as opposed to material or physical things.

Physical

Referring to the bodily aspects or pertaining to the material world, often contrasted with the mental or spiritual.