Economic Value Added Is Calculated by Which of the Following

question 110

Multiple Choice

Economic value added is calculated by which of the following formulas?

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

---

Definitions:

Knowledge Resources

The information, expertise, and skills that individuals or organizations possess, which can be leveraged to make decisions, solve problems, and create value.

Information Technology

The employment of computers, storage systems, networking, and additional physical hardware, infrastructure, and methods for the generation, processing, storage, security, and transfer of all types of electronic data.

Computer Hardware

The physical components of a computer system, including the central processing unit, monitor, keyboard, and mouse.

Databases

Structured sets of data or information, typically electronically stored and accessed, used for efficient retrieval, management, and manipulation of data.