Which of the following statements about economic value added (EVA)is true?
A)EVA is one of the best ways to answer the question, "Are we providing our customers with expected value?"
B)EVA is the amount by which profits (after expenses)exceed the cost of capital in a given year.
C)EVA is only useful to top managers.
D)The final step in calculating EVA is to compute the net operating profit after taxes.
E)All of these statements about economic value added are true.

Question

Quizplus · Accepted Answer

EVA measures the value created beyond the required return of the company's shareholders, calculated as profits exceeding the cost of capital.

Which of the Following Statements About Economic Value Added (EVA)is