True concerning economic value added

Assignment Help Financial Management

Reference no: EM131875629

1. Which of the following is true concerning economic value added (EVA)?

It represents the value created after deducting for the cost of both debt and equity capital.

It can be used in performance evaluation and tied to executive compensation.

It is no longer help to use, since it is overly dependent upon cash flow projections.

A. I and II only

B. I and III only

C. II and III only

D. I, II, and III

2. Which of the following statements is true concerning market competition and higher returns?

Higher returns are made possible when firms do business in perfectly competitive markets.

Markets consist of competitive barriers that eliminate the possibility of higher returns.

An appropriate corporate strategy would be to create and sustain competitive barriers.

A. I only

B. II only

C. III only

D. I and III only

Reference no: EM131875629

Questions Cloud

What is his net cash flow for the year : What is his net cash flow (surplus or deficit) for the year?

Discuss specific examples of ethical leadership : Explain the relationship between ethics and social responsibility. Discuss specific examples of ethical leadership and its impact on organizations and society.

Calculate an investment-assets-to-net-worth ratio : Using the data in the Hernandez's balance sheet, calculate an investment-assets-to-net-worth ratio. How would you interpret the ratio?

Compute accounts receivable and inventory turnover ratio : Compute the accounts receivable and inventory turnover ratios for 19X5. Alaska rounds all calculations to two decimal places

True concerning economic value added : Which of the following is true concerning economic value added (EVA)? Which of following statements is true concerning market competition and higher returns?

Describe the companys quality culture : Describe the quality issue and the impact the issue. Describe the company's quality culture and explain whether the culture played a part in the quality issue.

Compute the amount of realized gross profit : Compute the amount of realized gross profit to be recognized on the 2011 income statement, prepared using the installment-sales method

What is the role of e-commerce in serving your customers : What is the role of information technology and e-commerce in serving your customers? What are the key performance measures for evaluating your supply chain?

Calculate the net income and earnings per share : Income before interest and taxes is expected to be $3,000,000. Calculate each of the following for each alternative: Net income and Earnings per share

User Account

All Pages