From which of the following, Economic Value Added (EVA) will not increase :

CS Executive · Financial and Strategic Management · PYQS · December 2020
From which of the following, Economic Value Added (EVA) will not increase :
(A) Operating profits grow without employing additional capital
(B) Unproductive capital is liquidated
(C) Cash flow generated by a business equal to the cost of the capital
(D) Additional capital is invested in the projects, that give higher returns than the cost of procuring new capital

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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