In an EVA calculation, the corporate charge for a division's investment is based on a weighted average of the after-tax interest rate on the firm's debt and the cost of the firm's equity.

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This is correct. The corporate charge used in EVA calculations is a weighted average of the after-tax interest rate on debt and the cost of equity. This reflects the opportunity cost of capital and the actual cost of funding the division's investments.

In an EVA Calculation, the Corporate Charge for a Division's