Which of the following statements are correct? Check all that apply.

For any given year, one way to compute Water & Power's EVA is as the difference between its NOPAT and the product of its operating

capital and its weighted average cost of capital.

Water & Power's net income is growing at a rate greater than its sales. This could imply that either its revenues are growing more

quickly than its expenses or that management is being effective in managing its costs while achieving the reported growth in sales.

Other things remaining constant, either event should increase the value of the firm.

An increase in the number of common shares outstanding must increase the market value of the firm's equity.

Water & Power's NCF is calculated by adding its annual interest expense to the corresponding year's net income.

The percentage change in Water & Power's EVA indicates that management has decreased its value.