Which of the Following Statements Is CORRECT

question 62

Multiple Choice

Which of the following statements is CORRECT?

• A) MVA stands for "market value added" and is defined as follows:
• MVA = (Shares outstanding)(Stock price)+ Book value of common equity.
• B) The primary difference between EVA and accounting net income is that when net income is calculated,a deduction is made to account for the cost of common equity,whereas EVA represents net income before deducting the cost of the equity capital the firm uses.
• C) MVA gives us an idea about how much value a firm's management has added during the last year.
• D) EVA gives us an idea about how much value a firm's management has added over the firm's life.
• E) EVA stands for "economic value added" and is defined as follows:
• EVA = NOPAT - (Total invested capital)(AT cost of capital %)

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Definitions:

Battery

In law, battery is the intentional unpermitted act causing harmful or offensive contact with the "person" of another.

Assault

An intentional act that creates a reasonable apprehension of an imminent harmful or offensive contact.

Unfair Competition

The act of competing with another not to make a profit but for the sole purpose of driving that other out of business.

Interference with Contract

involves an action by a third party that deliberately disrupts the execution of a contractual agreement between two parties, potentially leading to legal action.