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Which of the following statements regarding Economic Value Added are TRUE? O Firm's profitability cannot be ascertained solely on the basis of its net profit

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Which of the following statements regarding Economic Value Added are TRUE? O Firm's profitability cannot be ascertained solely on the basis of its net profit O EVA measures the value created by the company when the required rate of return for creditors has been taken into account O According to EVA, firm's pretax profit must exceed the required rate of return of the book value of equity for the firm to be profitable O EVA is independent of the capital that has been invested into the firm

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