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:

Western Democracies

Countries in the Western part of the world that have a form of government in which power is vested in the people, either directly or through elected representatives.

Privately Owned

Refers to assets, companies, or property that is owned by private individuals or entities, rather than by the public or the government.

Media Companies

Organizations involved in the production, distribution, and/or broadcasting of content through various platforms, such as newspapers, television, and the internet.

Revenue

The income generated by a company or government from its activities, primarily from sales of goods or services or taxation.