Which of the Following Specifications for Calculating EVA® Is Correct

question 120

Multiple Choice

Which of the following specifications for calculating EVA® is correct?

• A) EVA® = accounting income/investment.
• B) EVA® = economic profit/equity equivalents.
• C) EVA® = NOPAT/investment, where NOPAT = net operating profit after (cash) taxes.
• D) EVA® = NOPAT − Imputed charge on EVA® capital, where NOPAT = net operating profit after (cash) taxes.
• E) EVA® = reported operating profit, after tax − imputed charge on average investment in the subunit.

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Definitions:

Articles of Partnership

A written agreement between individuals who choose to join together in a partnership, outlining the terms and conditions of their business relationship.

Information

A finding by a magistrate that there is enough evidence to charge the defendant and bring her or him to trial.

Text

Written or printed words, especially the main body of work in published or unpublished form.

UPA

An abbreviation for Uniform Partnership Act, a set of laws adopted by states to regulate the operation of partnerships within its jurisdiction.