According to the economic value added (EVA)method,a firm should be considered attractive only if it can generate sufficient income to pay for its existing capital.

Question

Quizplus · Accepted Answer

The economic value added (EVA) method focuses on determining if a firm can generate enough income to cover the cost of its capital, including both equity and debt. This means that the firm is considered attractive only if it is able to create value that is greater than the cost of the capital used to generate that value. Therefore, the statement is true.

According to the Economic Value Added (EVA)method,a Firm Should Be