In the EVA Equation, the _____ Is Subtracted from the After-Tax

question 3

Multiple Choice

In the EVA equation, the _____ is subtracted from the after-tax operating income to determine the economic value added.

• A) marginal tax
• B) operating cash flows
• C) current intrinsic value
• D) average cost of funds
• E) total capital invested

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Definitions:

Extraneous Solutions

Extraneous solutions are results that emerge from the solving process of an equation but do not satisfy the original equation.

Extraneous Solutions

Extraneous solutions are solutions that arise in the process of solving an equation but do not satisfy the original equation.

Equation

An affirmation in mathematics that posits the equality of two different expressions.

Directly

Directly refers to a manner of action or occurrence that happens without any intervening factors or steps.