Which One of the Following May Be the Best Measure

question 44

Multiple Choice

Which one of the following may be the best measure of company performance?

• A)EVA
• B)net income
• C)ROA
• D)ROE

Realize the difference between a firm's target and optimal capital structure.

Acknowledge how financial leverage affects a firm's ROA and cost structure.

Understand the role of EBIT-EPS analysis in evaluating leverage decisions.

Learn about operating leverage and its consequences on a firm's risk profile.

---

Definitions:

Kindertransport

The rescue operation that took place before World War II to bring Jewish children from Nazi-occupied territories to safety in Britain.

Foster Families

Families who provide temporary care for children who cannot live with their biological families, often due to safety or legal issues.

Human Ignorance

The state of being unaware, uninformed, or lacking knowledge about a wide range of topics or specific subjects.

Cell Biology

The branch of biology that studies the structure, function, and behavior of cells.