When Using Economic Value Added (EVA) to Calculate Residual Income

question 117

Multiple Choice

When using economic value added (EVA) to calculate residual income, what is the formula for the cost of capital employed?

• A) the actual percentage cost of capital × the total capital employed
• B) the standard percentage cost of capital × the total capital employed
• C) the actual percentage cost of capital × the average capital employed
• D) the standard percentage cost of capital × the average capital employed

---

Definitions:

Sperm

Male reproductive cells designed to fertilize female ova (eggs) during sexual reproduction.

Reproductive Structures

Organs or features of organisms that are involved in the production of offspring.

Human Civilization

The complex society that humans have developed through cultural, technological, and social advancements.

Anthophyta

A division within the plant kingdom comprising all flowering plants, characterized by the production of flowers and seeds enclosed within a fruit.