Economic value added can be improved by
A: Increasing profit without using more capital.
B: Using less capital to earn the same amount of profit.
C: Investing capital in high-return projects.
D: Investing capital in low-return projects.
A: Increasing profit without using more capital.
B: Using less capital to earn the same amount of profit.
C: Investing capital in high-return projects.
D: Investing capital in low-return projects.
举一反三
- Company A’s capital employed and its adjusted profit is $800m and $500m respectively. Its target capital structure is 75% equity 25% debt. The cost of equity is 18% and pre-tax cost of debt is 12%. What is the value of EVA using Economic Value Added approach?
- The traditional view of the production process is that capital is subject to A: Constant returns. B: Increasing returns. C: Diminishing returns. D: Diminishing returns for low levels of capital, and increasing returns for high levels of capital.
- An increase in ROCE could be achieved by Increasing operating profit and capital employed.
- What is the capital of Thailand? A: Bangkok is Thailand capital. B: Thailand capital Bangkok. C: Bangkok is capital. D: The capital of Thailand is Bangkok.
- In the absence of regulation, banks would probably hold A: too much capital, reducing the efficiency of the payments system. B: too much capital, reducing the profitability of banks. C: too little capital, increasing the return on equity. D: none of the above