The economic value added approach takes into consideration the cost of both equity and debt.

Name: The economic value added approach takes into consideration the cost of both equity and debt.
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The Economic Value Added (EVA) approach calculates a company's financial performance by subtracting its cost of capital (which includes both the cost of debt and the cost of equity) from its operating profit, adjusted for taxes on a cash basis.

The Economic Value Added Approach Takes into Consideration the Cost