Economic value added (EVA®)is computed as:
A)net income before taxes + long-term debt + interest expense.
B)net income before taxes + interest expense - capital charge.
C)net income before taxes - interest expense + capital charge.
D)net income before taxes - long-term debt + interest expense.

Question

Quizplus · Accepted Answer

Economic Value Added (EVA) is calculated as net income before taxes plus interest expense minus the capital charge, which represents the cost of capital employed.

Economic Value Added (EVA®)is Computed As