Another term for EVA is ________.
A) net income
B) operating income
C) residual income
D) market-based income

Question

Quizplus · Accepted Answer

EVA stands for Economic Value Added, which is a measure of a company's financial performance calculated by subtracting the cost of capital from its operating profit. Residual income is another term used to describe the amount of profit generated by a company after all expenses have been paid, including the cost of capital. Therefore, the best choice for another term for EVA would be C, residual income. The other answer choices (A, B, and D) are not related to EVA or its calculation.

Another Term for EVA Is ________