EVA Is Calculated As

question 62

Multiple Choice

EVA is calculated as:

• A)EVA Net Income - (Cost of Capital x EVA Invested Capital).
• B)Total Net Income - (Cost of Capital x Invested Capital).
• C)Gross Income - Cost of Capital.
• D)Total Net Income - EVA Net Income.
• E)Accounting earnings adjusted for EVA.

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Definitions:

Systemic Circuit

The part of the cardiovascular system that carries oxygenated blood away from the heart to the body and returns deoxygenated blood back to the heart.

Pulmonary Circuit

The part of the circulatory system that carries deoxygenated blood from the heart to the lungs for oxygenation, and returns oxygenated blood back to the heart.

Arteries

Blood vessels that carry oxygen-rich blood away from the heart to the body.

Left Ventricle

The chamber of the heart that receives oxygenated blood from the left atrium and pumps it out under high pressure through the aorta to the systemic circulation.