Which of the Following Statements Is Most Correct About Economic

Multiple Choice

Which of the following statements is most correct about Economic Value Added (EVA) ?

A) If a company has no debt, its EVA equals its net income.
B) If a company has positive ROE, its EVA must also be positive.
C) A company's EVA will be positive whenever the cost of equity exceeds the ROE.
D) All of the statements above are correct.
E) None of the statements above is correct.