One Calculates Economic Value Added (EVA)as Follows

question 18

Multiple Choice

One calculates economic value added (EVA) as follows:

• A)EVA = income earned − (cost of debt)× (investment).
• B)EVA = income earned − (cost of equity)× (investment).
• C)EVA = income earned − (cost of capital)× (investment).
• D)EVA = income earned − (investment)× (cost of capital).

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