Which of the following statements are true about the interest-burden ratio? Check all that apply: If the company has no financial leverage, the interest-burden ratio will be equal to 0 . A company with higher financial leverage will have a lower interest-burden ratio. It can be expressed as Net profits/Pretax profits. It can be expressed as EBIT/Interest Expense. If the company has no financial leverage, the interest-burden ratio will be equal to 1 . Which of the following statements are true about economic value added (EVA)? It is also called market value added (MVA). EVA is positive only if ROE is higher than the interest rate on debt. EVA is the difference between the ROA and the opportunity cost of capital, multiplied by the capital invested in the company. EVA is the difference between the ROA and the interest rate paid on debt, multiplied by the capital invested in the company. Try again