Discussion Questions

Answer the following discussion questions. Two well developed paragraphs for each question. Keep each question separate.

1. "Economic value added (EVA) is a concept developed in chapter 3. The economic concept of added value is important. Imagine the use of a value added tax (VAT) which would replace a sales tax. Discuss why this new tax would be implemented and how it would affect us in our day to day lives."

2. "Discuss some advantages of some dividend policies you are familiar with. What is the purpose of a dividend policy? What about companies that never pay dividends?"