Considering the Economic Value Added (EVA) of a Firm, Which

question 58

Multiple Choice

Considering the economic value added (EVA) of a firm, which of the following should increase the firm's value?

• A) EVA = 0
• B) EVA > 0
• C) EVA < 0
• D) EVA > EPS
• E) P/E ratio > EVA

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Definitions:

Legitimate Power

The authority that a person or a position holds, which is recognized as rightful by those they govern or lead, often derived from official or formal roles.

Expert Power

The influence and authority one possesses as a result of one's experience, skills, or knowledge in a specific area.

Reward Power

The capacity to influence others' behavior by offering them positive incentives.

Coalition Building

The process of assembling a group of diverse organizations or people to pursue a common goal or address a specific issue through collaboration.