Multiple Choice
Which of the following strategies may increase economic value added?
A) Increase profit as a percentage of capital employed.
B) Borrow additional funds and invest in assets that earn more than the weighted average cost of capital.
C) Sell off assets that earn more than the weighted average cost of capital.
D) Increase profit as a percentage of capital employed AND borrow additional funds and invest in assets that earn more than the weighted average cost of capital.
Correct Answer:
Verified
Correct Answer:
Verified
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