Which of the following specifications for calculating EVA® is correct?
A) EVA® = accounting income/investment.
B) EVA® = economic profit/equity equivalents.
C) EVA® = NOPAT/investment, where NOPAT = net operating profit after (cash) taxes.
D) EVA® = NOPAT − Imputed charge on EVA® capital, where NOPAT = net operating profit after (cash) taxes.
E) EVA® = reported operating profit, after tax − imputed charge on average investment in the subunit.
Correct Answer:
Verified
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