Economic Value Added Is Equal to ________

question 87

Multiple Choice

Economic value added is equal to ________.

• A) After-tax operating income - [Weighted-average cost of capital + (Total assets - Current liabilities)]
• B) Pre-tax operating income - [Weighted-average cost of capital + (Total assets - Current liabilities)]
• C) After-tax operating income - [Weighted-average cost of capital × (Total assets - Current liabilities)]
• D) Pre-tax operating income - [Weighted-average cost of capital × (Total assets - Current liabilities)]

---

Definitions:

Laissez-Faire Capitalism

Laissez-faire capitalism is an economic system where the government's intervention in business affairs is minimal, promoting a free-market environment where businesses operate with little to no regulation.

Economic Liberty

The freedom for individuals and businesses to operate and compete in a market with minimal government interference.

Economic Equality

A state within a society where individuals have equal access to wealth, opportunities, and resources, minimizing disparities.

Age Of 65

Often considered the traditional retirement age in many countries, representing a milestone when individuals may qualify for senior citizen benefits and pensions.