__________ is the measure of profits that remain after the cost of capital has been deducted from operating profits.
A)Return on Investment (ROI)
B)Complexity
C)Economic Value Added (EVA)
D)Centralization
E)Formalization

Question

__________ is the measure of profits that remain after the cost of capital has been deducted from operating profits.
A)Return on Investment (ROI)
B)Complexity
C)Economic Value Added (EVA) 
D)Centralization
E)Formalization

Quizplus · Accepted Answer

Economic Value Added (EVA) measures the residual income that a company generates above and beyond the cost of capital. It is calculated by subtracting a company's cost of capital from its operating profits. It provides a more accurate picture of a company's profitability by taking into account the opportunity cost of investing capital in a particular project or business.

__________ Is the Measure of Profits That Remain After the Cost