Which of the Following Statements Is CORRECT

question 19

Multiple Choice

Which of the following statements is CORRECT?

• A) Actions that increase reported net income will always increase cash flow.
• B) One way to increase EVA is to generate the same level of operating income but with less total invested capital.
• C) One drawback of EVA as a performance measure is that it mistakenly assumes that equity capital is free.
• D) One way to increase EVA is to achieve the same level of operating income but with more total invested capital obtained at a higher cost of capital.
• E) If a firm reports positive net income,its EVA must also be positive.

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Definitions:

DineEquity

A parent company that owns and operates popular restaurant chains, known for its commitment to quality dining experiences and customer service.

E-mail

A method of sending messages and files over a computer network, used for personal and professional communication.

Communication Medium

The medium or mechanism utilized for transmitting data or communications among people or entities.

Personal Notes

Individual records or reminders written down for personal reference or memory aid.