The following are advantages of using EVA as a measure of performance except:
A) EVA is a substitute for explicit monitoring by top management
B) EVA makes the cost of capital visible to the operating management hence reduce capital employed
C) EVA does not measure present value
D) EVA highlights the parts of business that are not performing
Correct Answer:
Verified
Q16: Agency costs can be reduced by monitoring:
I.
Q17: Managers on a fixed salary are subjected
Q18: The following actions by the managers may
Q19: Generally, mangers' compensation is based on:
A) the
Q20: If the cost of capital is 10%,
Q22: Calculate the economic depreciation in years 1,
Q23: The following firms have negative EVAs except:
A)
Q24: Calculate the economic income in years 1,
Q25: Generally, firms with high levels of intangible
Q26: Economic rate of return is defined as:
A)
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