Which of the following actions-all else equal-will increase a firm's EVA?
A)The firm raises its prices but ships the same amount of product.
B)The firm increases its inventory.
C)The firm increases its borrowing to repurchase some of its shares.
D)The firm increases its accounts receivable.

Question

Quizplus · Accepted Answer

If the firm raises its prices but ships the same amount of product, it will result in a higher revenue and therefore a higher EVA, assuming all costs remain the same. The other options may have varying impacts on the firm's financials, but they do not directly impact EVA.

Which of the Following Actions-All Else Equal-Will Increase a Firm's