Economic Value Added (EVA) Is a Concept That Is Closely

question 140

Multiple Choice

Economic value added (EVA) is a concept that is closely related to residual income. EVA is computed by:

• A) subtracting the adjusted total cost of capital from the adjusted after-tax income.
• B) subtracting adjusted after-tax income from total divisional investment.
• C) dividing adjusted after-tax income by adjusted divisional investment.
• D) dividing adjusted after-tax income by adjusted total cost of capital.

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Definitions:

Wear Out

The phenomenon where repeated exposure to the same advertisement or message leads to decreased consumer response or interest over time.

Influential People

Individuals who have the power to affect the decisions of others due to their authority, knowledge, position, or relationship.

Reality Engineering

refers to the process of influencing or shaping perceptions of reality, often through media, technology, or psychological means.

Promotional Strategies

Marketing efforts designed to communicate the value of a product or service to potential customers in order to increase sales.