Which of the following statements is CORRECT?

1. One way to increase EVA is to achieve the same level of operating income but with more total invested capital obtained at a higher cost of capital.
2. One way to increase EVA is to generate the same level of operating income but with less total invested capital.
3. 50% of the dividends received by corporations is excluded from taxable income.

If the pure expectations theory holds, the yield curve for Treasury securities cannot be downward sloping.

		1 and 2 only
		4 only
		2 and 3 only
		1, 2, and 3 only
		3 and 4 only