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samualson samualson
wrote...
Posts: 2459
6 years ago
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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DeanaRayDeanaRay
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Posts: 1112
6 years ago
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samualson Author
wrote...
6 years ago
Thank you for being such a great website leader! Your answer's right.
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