7

XYZ Corp. has a large positive market value added (MVA). As a result, which of the following statements must be true?

Select one:

a. XYZ will have a basic earning power ratio that exceeds its industry average

b. XYZ will have a net profit margin that exceeds 10%

c. XYZ will have a total asset turnover ratio higher than its industry average

d. XYZ will have a market-to-book ratio greater than 1.0