What Formula Is Used to Calculate Economic Value Added

question 72

Multiple Choice

What formula is used to calculate economic value added?

• A)After-tax operating income + (Weighted average cost of capital * Total capital employed)
• B)After-tax operating income * Weighted average cost of capital
• C)After-tax operating income - (Weighted average cost of capital * Total capital employed)
• D)Total capital employed - (Weighted average cost of capital * After-tax operating income)

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Definitions:

Decibels

A unit of measurement for the intensity of sound, representing a ratio between two quantities on a logarithmic scale.

Hertz

In the International System of Units (SI), frequency is measured in a unit described as one cycle occurring every second.

Hertz

The unit of frequency in the International System of Units (SI), defined as one cycle per second.

Taste Receptors

specialized sensory cells located on the tongue and other parts of the mouth, responsible for detecting and responding to tastes such as sweet, salty, bitter, sour, and umami.