Which of the following is the correct calculation of economic value added (EVA) ?
A) Net Operating Profit Before Tax - [Weighted-Average Cost of Capital ´ (Total Assets - Non-Interest-Bearing Debt) ].
B) Net Operating Profit After Tax - [Weighted-Average Cost of Capital ´ (Total Assets - Non-Interest-Bearing Debt) ].
C) Weighted-Average Cost of Capital ´ [Net Operating Profit Before Tax - (Total Assets - Non-Interest-Bearing Debt) ].
D) Weighted-Average Cost of Capital ´ (Net Operating Profit After Tax - [Total Assets - Non-Interest-Bearing Debt) ].
Correct Answer:
Verified
Q82: EVA encourages the right kind of behavior
Q83: Which of the following best indicates how
Q84: Marlow Company
The following information pertains to the
Q85: Young Company has a tax rate of
Q86: Young Company has a tax rate of
Q88: The minimum desired ROI rate
A)is based on
Q89: If the investment turnover ratio increased by
Q90: If the National Division of American Products
Q91: Which statement is true concerning economic value
Q92: Which of the following defines Economic value
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents