Which of the Following Shows the Calculation for Economic Value

question 14

Multiple Choice

Which of the following shows the calculation for economic value added (EVA) ?]

• A)EVA = NOPAT + After-Tax Dollar Cost of Financial Capital Used
• B)EVA = ROE - Percentage Cost of Financial Capital
• C)EVA = NOPAT - After-Tax Dollar Cost of Financial Capital Used
• D)EVA = ROE + Percentage Cost of Financial Capital

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Definitions:

Sales Profits

The financial gain realized when the revenue from selling goods or services exceeds the cost associated with providing them.

Operating

Operating refers to the day-to-day activities and processes undertaken by an organization or system to conduct its business and achieve its objectives.

Territory Salesperson

A professional responsible for managing and selling products or services to customers within a specific geographical area.

Solving Customer Issues

The process of identifying, addressing, and resolving problems or complaints raised by customers.