Which of the Following Items Do Not Form Part of the Economic

question 14

Multiple Choice

Which of the following items do not form part of the economic value added calculation?

• A) Weighted average cost of capital
• B) Book value of equity
• C) Market value of equity
• D) Income tax rate

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Definitions:

Insurer's Risk

The risk borne by an insurance company, being the potential financial loss they accept when providing policies to insureds.

Liability Insurance

A type of insurance coverage that protects an individual or entity from the risk of being held legally liable for injuries or damages to others.

Negligence

The lack of taking adequate precautions to prevent causing harm or damage to someone else.

Wrongful Nature

The characteristic of an act or behavior deemed improper, illegal, or unjust according to societal or legal standards.