Which of the Following Statements Concerning Economic Value Added (EVA)is

question 60

Multiple Choice

Which of the following statements concerning Economic Value Added (EVA) is MOST correct?

• A)the higher the cost of capital,the higher the EVA,other things being held constant
• B)EVA can be negative even if operating profits are positive.
• C)A company with positive net income will have positive EVA.
• D)Higher operating return on assets will result in lower EVA for a company with a debt ratio over 50%.

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