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.

Question

Quizplus · Accepted Answer

The dollar value of a firm's return in excess of its opportunity costs is called its economic value added (EVA). This measures the true economic profit of a firm by deducting the firm's cost of capital, or the opportunity cost of the investors' capital, from its operating profit after tax.

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