Which one of these statements is correct?

Multiple Choice

• EVA considers the cost of long-term debt financing but excludes the cost of equity financing.

• To caluclate total capitalization, market value of shareholder's equity is needed.

• When the management of a business is conducted by individuals other than the onwers, the business could be a corporation.

• Market value added measures the difference between the total market value of assets and the total book value of assets.