Multiple Choice
Which of the following statements is true concerning Economic Value Added?
A) A growing number of firms tie managers' compensation to EVA.
B) A profitable firm will always have a positive EVA.
C) EVA recognizes that the cost of capital is not a real cost.
D) If a firm has positive present value of growth opportunities it will have positive EVA.
Correct Answer:
Verified
Correct Answer:
Verified
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