The Only Measure of Firm Performance That Accounts for Cost

question 71

Multiple Choice

The only measure of firm performance that accounts for cost of capital is:

• A) ROC.
• B) ROA.
• C) ROE.
• D)EVA.

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Definitions:

Dice

Small cube-shaped objects with dots on each of their six faces, used for generating random numbers in games.

Scatterplot

A graphical representation using dots to show the relationship between two sets of data or variables.

Negatively Correlated

An association between two variables characterized by the increase of one variable leading to the decrease of the other, and reverse scenarios.

Variables

Elements, features, or factors that can change and have different values among subjects in a study or experiment.