Multiple Choice
Which of the following is the correct calculation of economic value added (EVA) ?
A) Net Operating Profit Before Tax - [Weighted-Average Cost of Capital ´ (Total Assets - Non-Interest-Bearing Debt) ].
B) Net Operating Profit After Tax - [Weighted-Average Cost of Capital ´ (Total Assets - Non-Interest-Bearing Debt) ].
C) Weighted-Average Cost of Capital ´ [Net Operating Profit Before Tax - (Total Assets - Non-Interest-Bearing Debt) ].
D) Weighted-Average Cost of Capital ´ (Net Operating Profit After Tax - [Total Assets - Non-Interest-Bearing Debt) ].
Correct Answer:
Verified
Correct Answer:
Verified
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