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How Is EVA (Economic Value Added)calculated

Question 42

Multiple Choice

How is EVA (economic value added) calculated?


A) Net Operating Profit After Tax - [Weighted-Average Cost of Capital ´ (Total Assets - Non-Interest-Bearing Debt) ].
B) the amount of earnings generated above the cost of funds invested to generate those earnings.
C) Net Operating Profit After Tax - [Weighted-Average Cost of Capital ´ (Total Assets - Non-Interest-Bearing Debt) ],and the amount of earnings generated above the cost of funds invested to generate those earnings.
D) None of the answers is correct.

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