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Economic Value Added Uses "Adjusted After-Tax Operating Profit" as One

Question 24

Multiple Choice

Economic value added uses "adjusted after-tax operating profit" as one of its inputs. One purpose of using after-tax profit, rather than operating profit, is to B:


A) Encourage managers to minimise taxes
B) Improve information reported to the ASIC
C) Encourage managers to file tax reports
D) Remove bias from the EVA calculation

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