Multiple Choice
Which of the following is true of economic value added (EVA) ?
A) Economic value added is calculated by adding revenue to operating profit.
B) Economic value added is calculated by multiplying margin ratio and average operating assets.
C) Economic value added is calculated by dividing operating income by sales.
D) Economic value added is calculated by deducting the dollar cost of capital employed from after-tax operating income.
Correct Answer:
Verified
Correct Answer:
Verified
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