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:

Marginal Utility Data

Information regarding the incremental benefit or satisfaction gained from consuming an additional unit of a good or service.

Utility Maximization

Utility maximization refers to the concept in economics where individuals or entities choose the allocation of resources to maximize their satisfaction or happiness.

Utility Maximization

The process by which consumers allocate their spending to maximize the total satisfaction or utility received from their available resources.

Utility Maximization

The process by which consumers allocate their income in a way that maximizes their overall satisfaction or utility.