Which of the Following Statements Regarding the Calculation of Economic

question 20

Multiple Choice

Which of the following statements regarding the calculation of Economic Value Added (EVA®) is not true?

• A) Adjusted accounting data are used to estimate EVA®.
• B) The operating approach and the financing approach lead to identical estimates of EVA®.
• C) EVA® NOPAT represents after-tax cash operating income, after depreciation.
• D) EVA® NOPAT represents after-tax cash operating income, before depreciation.
• E) The divisional cost of capital (minimum rate of return) is used to impute a charge on capital invested in the division during the period.

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Definitions:

Shareholder Review

A process or meeting in which shareholders assess the performance, strategy, and prospects of a company.

SMART Marketing Objectives

Goals for a marketing campaign that are Specific, Measurable, Achievable, Relevant, and Time-bound.

Motivational

Referring to factors or strategies designed to stimulate a person's interest or enthusiasm to achieve a goal.

Realistic

Describes something that is practical, feasible, and grounded in reality.