_____ is determined by subtracting the costs associated with both the debt and the equity that the firm uses from its after-tax operating income?

Question

Quizplus · Accepted Answer

Economic value added (EVA) is determined by subtracting the costs associated with both the debt and the equity that the firm uses from its after-tax operating income. This calculation provides a measure of the true economic value that a company generates in excess of the capital it has invested. This is a useful tool for assessing a company's financial performance and is often used in financial analysis and valuation.

_____ Is Determined by Subtracting the Costs Associated with Both