Which One of These Statements Is Correct

question 21

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:

Federal Research Grants

Financial funding provided by the federal government to support research projects in areas like science, technology, education, and health.

ROTC Program

The Reserve Officers' Training Corps program that trains college students for future service in the branches of the United States military, offering scholarships in return for service commitments.

Interstate Highway System

A network of controlled-access highways in the United States, established by the Federal Aid Highway Act of 1956, designed to promote efficient transportation of goods and individuals across states.