Multiple Choice
For working out EVA, the cost of capital is calculated as:
A) Capital Employed multiplied by weighted average cost of capital (WACC)
B) Capital borrowed multiplied by the rate of interest
C) Capital provided by the firm's owners multiplied by the long term rate of dividends
D) The cost of a issuing new shares
Correct Answer:

Verified
Correct Answer:
Verified
Q28: The text focuses on enterprise value rather
Q29: Estimating a firm's future free cash flows
Q30: A balanced scorecard is used for:<br>A)Assessing on
Q31: Strategic appraisal essentially involves:<br>A)Bringing in a strategy
Q32: In practice, valuing firms by discounting economic
Q34: Many of the most successful firms were
Q35: To understand poor financial performance, one can
Q36: The notion that a firm is merely
Q38: The maximization of profit in the long-term
Q379: What is economic profit?