The after-tax operating profit minus the total annual cost of capital equals the:
A)Residual income
B)EVA
C)ROI
D)Net income

Name: The after-tax operating profit minus the total annual cost of capital equals the: A)Residual income B)EVA C)ROI D)Net income
Brand: Quizplus
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Question

Quizplus · Accepted Answer

EVA (Economic Value Added) is the correct answer because it is calculated by subtracting the total annual cost of capital from the after-tax operating profit, which is essentially the definition provided in the question.

The After-Tax Operating Profit Minus the Total Annual Cost of Capital