Which of the Following Statements Best Describes EVA

question 67

Multiple Choice

Which of the following statements best describes EVA?

• A) One way to increase EVA is to achieve the same level of operating income but with more investor-supplied capital.
• B) If a firm reports positive net income, its EVA must also be positive.
• C) One drawback of EVA as a performance measure is that it mistakenly assumes that equity capital is free.
• D) One way to increase EVA is to generate the same level of operating income but with less investor-supplied capital.

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Definitions:

Drive

The motivation or determination to achieve something, often used in the context of personal or professional goals.

Persuasive Business Messages

Communications designed to influence the thoughts or actions of others in a business context, often aiming to promote products, services, or ideas.

Requests for Action

Calls for specific actions to be taken by individuals or groups, often found in formal communications.

Demographic Information

Data related to the characteristics of a population or a particular group within it, such as age, gender, income, and education.