_______ is a financial performance measure based on the ____ between a firm's actual earnings and required earnings.

Question

Quizplus · Accepted Answer

Economic value added (EVA) is a measure of financial performance that calculates the difference between a company's net operating profit after taxes (NOPAT) and the opportunity cost of the capital invested in the company. The opportunity cost is the return that could have been earned on the same amount of investment in an alternative venture with similar risk. EVA measures the extent to which a company is creating value for its shareholders.

_______ Is a Financial Performance Measure Based on the ____

___ Is a Financial Performance Measure Based on the