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:

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