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:

Significant

Of considerable importance, size, or worth; likely to have influence or effect.

Uncertainty Resolution

The process of clarifying and reducing the uncertainty in decision-making or forecasting, particularly through the gathering of more information oranalysis.

Tends

Likely to behave in a particular way or follow a specific pattern over time.

High Dividend Payout

Refers to companies that return a large portion of their earnings to shareholders in the form of dividends, often signaling financial strength.