Which One of These Statements Is Correct

question 70

Multiple Choice

Which one of these statements is correct?

• A)market value added measures the difference between the total market value and the total book value of equity.
• B)net income is also called economic value added.
• C)EVA measures the net profit of a firm after deducting the cost of the assets used in the production process.
• D)EVA considers the cost of long-term debt financing but excludes the cost of equity financing.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded, resulting in market stability.

Tax Levied

A compulsory financial charge or a type of fee imposed by a governmental organization upon individuals or entities to fund government spending and various public expenditures.

Deadweight Loss

A reduction in economic productivity that arises when a good or service does not reach or cannot reach its market equilibrium.