Which of the Following Statements Is True Concerning Economic Value

question 26

Multiple Choice

Which of the following statements is true concerning Economic Value Added?

• A)A growing number of firms tie managers' compensation to EVA.
• B)A profitable firm will always have a positive EVA.
• C)EVA recognises that the cost of capital is not a real cost.
• D)If a firm has positive present value of growth opportunities it will have positive EVA.

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Definitions:

Ethical Mind

The capability to recognize and deliberate upon moral values and principles, applying them in one’s decisions and actions.

Aspire

To have a strong desire, longing, or aim to achieve something, often something difficult or ambitious.

Good Work

Work that is not only high in quality but also ethically responsible and socially beneficial.

Reversibility

The property of a process or action to be reversed, returning to its original state or condition without significant changes or consequences.