Question: The key difference between residual income and economic value added is that EVA a. uses the actual cost of capital for the company rather than
The key difference between residual income and economic value added is that EVA
a. uses the actual cost of capital for the company rather than a minimum required cost of capital.
b. uses the minimum required cost of capital for a company rather than the actual percentage cost of capital.
c. is a ratio rather than an absolute dollar amount.
d. cannot be negative.
e. There is no difference between residual income and EVA.
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