Multiple Choice
Economic value added is calculated by which of the following formulas?
A) EVA = After-tax operating income + (Weighted average cost of capital × Total capital employed)
B) EVA = After-tax operating income × Weighted average cost of capital
C) EVA = After-tax operating income - (Weighted average cost of capital × Total capital employed)
D) EVA = Total capital employed - (Weighted average cost of capital × After-tax operating income)
Correct Answer:
Verified
Correct Answer:
Verified
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