Which of the Following Specifications for Calculating EVA $\rarr$ Is Correct?
A)EVA

question 21

Multiple Choice

Which of the following specifications for calculating EVA $\rarr$ is correct?

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

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