Economic Value Added

question 1

Multiple Choice

Economic value added:

• A) is a dollar amount rather than a percentage.
• B) uses a firm's weighted-average cost of capital.
• C) uses total assets in its computation and ignores current liabilities.
• D) cannot be negative.
• E) is both a dollar amount rather than a percentage and uses a firm's weighted-average cost of capital.

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Definitions:

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