Which of the Following Statements Is Correct

question 11

Multiple Choice

Which of the following statements is correct?

• A)MVA gives us an idea about how much value a firm's management has added during the last year.
• B)MVA stands for market value added, and it is defined as follows:MVA = (Shares outstanding) (Stock price) + Book value of common equity
• C)EVA stands for economic value added, and it is defined as follows:EVA = (Operating capital) (ROIC - WACC)
• D)EVA gives us an idea about how much value a firm's management has added over the firm's life.

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Definitions:

Reality Therapist

A therapist who uses reality therapy, a method focused on helping clients choose more effective behaviors to satisfy their needs.

Value Judgments

Value Judgments are assessments or opinions formed about something's worth or importance, often based on personal values, beliefs, or cultural standards.

Behavioral Change

The process of modifying actions, habits, or behaviors to improve health, well-being, or social interactions.

Contingency Contract

A behavior modification technique where an agreement is made between two parties, outlining specific behaviors and the rewards or consequences that follow from those behaviors.