Question
A)Which of the following statements regarding EVA is NOT CORRECT? Group of answer choices If a firm's risk increases, all others hedl constant, its EVA
A)Which of the following statements regarding EVA is NOT CORRECT?
Group of answer choices
If a firm's risk increases, all others hedl constant, its EVA will decline.
EVA assumes that equity capital is free.
Actions that increase reported net income may not always increase EVA.
A firms EVA will increase if it achieves the same operating income with less investor-supplied capital.
A firms EVA will increase if its WACC declines.
B)Which of the following concerning short-term financing methods is NOT CORRECT?
Group of answer choices
Short-term bank loans typically do not require assets as collateral.
Commpercial papers typically carry substantially lower interest rates than prime rates.
Accruals and accounts payables carry explicit interest charges.
Firms generally have little control over the level of accruals.
Commercial papers have maturities no longer than nine months.
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