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Which of the Following Is Not a Problem with EVA

Question 90

Multiple Choice

Which of the following is not a problem with EVA?


A) EVA cannot be used to measure the profitability of a private company
B) EVA cannot be used to compare the effectiveness of managers with different amounts of assets under their control
C) EVA assumes that the book values of assets are equal to their current worth
D) EVA assumes that you know the cost of capital

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