The dollar value of a firm's return in excess of its opportunity costs is called its
A) profitability measure.
B) excess return.
C) economic value added.
D) prospective capacity.
E) return margin.

Question

Quizplus · Accepted Answer

Economic Value Added (EVA) is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis. It captures the value created in excess of the required return of the company's shareholders.

The Dollar Value of a Firm's Return in Excess of Its