Economic Value Added (EVA)is

question 46

Multiple Choice

Economic Value Added (EVA) is:

• A) The difference between the return on assets and the opportunity cost of capital times the capital base
• B) ROA x ROE
• C) A measure of the firm's abnormal return
• D) Largest for high growth firms

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Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned from their investments in other companies, by reporting these profits proportional to their ownership percentage.

Dividend Revenue

Dividend revenue refers to the income earned by investors or companies from holding shares of other entities that pay dividends.

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of another entity, without having full control over it.