What Will EVA and MVA Be If a Business Generates

question 25

Multiple Choice

What will EVA and MVA be if a business generates returns equal to the firm's cost of capital?

• A) Both will be zero.
• B) EVA will exceed MVA.
• C) MVA will exceed EVA.
• D) EVA will be positive.
• E) MVA will be positive.

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Definitions:

Depressants

Drugs that slow activity in the central nervous system.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out information.

Slow Down

A decrease in speed or rate, often advised as a strategy to reduce stress or increase accuracy in tasks.

Depressant

A substance that reduces arousal or stimulation, affecting the central nervous system by slowing down the body's functions and processes.