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What Formula Is Used to Calculate Economic Value Added

Question 72

Multiple Choice

What formula is used to calculate economic value added?


A) After-tax operating income + (Weighted average cost of capital * Total capital employed)
B) After-tax operating income * Weighted average cost of capital
C) After-tax operating income - (Weighted average cost of capital * Total capital employed)
D) Total capital employed - (Weighted average cost of capital * After-tax operating income)

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