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

Question 13

Multiple Choice

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


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

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