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  3. Study Set
    Principles of Corporate Finance
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    Exam 12: Agency Problems, Compensation, and Performance Measurement
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    A Firm Has an Average Investment of $1,000 During the Year.During
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A Firm Has an Average Investment of $1,000 During the Year.During

Question 17

Question 17

Multiple Choice

A firm has an average investment of $1,000 during the year.During the same time,the firm generates after-tax earnings of $150.
Calculate the economic value added (EVA) for the firm.(The cost of capital is 10%.)


A) $100
B) $50
C) $120
D) $150

Correct Answer:

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