Q4. Which of the following observations about Economic Value Added (EVA) compared to Market Value Added (MVA) is not correct? A. There is a relationship between EVA and MVA, but it is not direct B. When manager performance is measured as part of an incentive-based compensation plan, MVA is the measure that is typically used. C. EVA is an estimate of the firm's true economic profit for a given year. D. MVA measures the effect of firm performance since the firm's inception to the most recent year's operations. E. EVA can be applied to individual corporate divisions, but MVA applies to the entire corporation Q5. If a firm's is positive, the market value of its stock price is likely to have increased. A. book value of equity B. net operating working capital C. economic value added D. return on invested capital E. net operating profit after taxes Q6. Non-operating items that are excluded when calculating net operating working capital are A. notes payable and accounts payable B. inventories and accounts receivable C. cash and accruals D. cash and marketable securities E.marketable securities and notes payable Q7. Which of the following would be likely to increase Board of Directors' effective monitoring of managerial action? A. A majority of board members being insiders, appointed by the CEO B. Increased activism by institutional investors with large ownership positions C. The outsider board members having strong connections to the CEO through interlocking boards D. Board members being wholly compensated through salary E. A high percentage of firm stock being owned by a Iarna number of mall interton