Economic Value Added (EVA)applies the Target Rate of Return to the Market

question 34

True/False

Economic value added (EVA)applies the target rate of return to the market value of the capital invested in a division.

Recognize correct treatments of specific items in the operating activities section of the cash flow statement.

Knowledge of how changes in operating, investing, and financing activities affect a company’s cash position.

Skills in analyzing the comparative balance sheets to identify the cash impacts of various transactions.

Understand the role of net income, dividends, and other adjustments in calculating cash flows.

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Definitions:

Depression of 1893

A severe economic downturn in the United States that led to widespread unemployment, bank failures, and a contraction of the national economy.

Overexpansion

The rapid and often uncontrollable growth of a business, territory, or economy, which can lead to inefficiency, unmanageability, and financial problems.

American Railroads

A network of rail transport that significantly contributed to the economic development and westward expansion of the United States throughout the 19th and 20th centuries.

Railroad Industry

The railroad industry encompasses companies that operate railroads, which are large networks of track on which trains travel to transport goods and passengers.