Which of the following specifications for calculating EVA is correct?
A) EVA = economic profit.
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:
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