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.


A. A growing number of firms tie managers' compensation to EVA.

Business

You might also like to view...

Which of the following is not a likely source of information for competitive intelligence?   

A. Competitors' press releases B. Industry gossip C. Competitors' annual reports D. Competitor's customer records E. Sales visits to customers

Business

An agency's rule-making power is derived from:

A. executive order B. an institutional charter issued by either the Secretary of State of the United States government or the Secretary of State of the particular state in which the agency is to exercise its investigative and adjudicatory powers. C. the enabling legislation enacted by Congress for the creation of the agency. D. judicial fiat

Business

The more debt securities a corporation issues, the greater the risk of default

Indicate whether the statement is true or false

Business

In economic terms, all resources are ________, that is, they can be replaced by substitutes, and in this sense resources are infinite.

Fill in the blank(s) with the appropriate word(s).

Business