Which of the following statements regarding the calculation of Economic Value Added (EVA®) is not true?
A) Adjusted accounting data are used to estimate EVA®.
B) The operating approach and the financing approach lead to identical estimates of EVA®.
C) EVA® NOPAT represents after-tax cash operating income, after depreciation.
D) EVA® NOPAT represents after-tax cash operating income, before depreciation.
E) The divisional cost of capital (minimum rate of return) is used to impute a charge on capital invested in the division during the period.
Correct Answer:
Verified
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