EVA analysis reflects an emphasis on risk-adjusted return on capital.

Question

Quizplus · Accepted Answer

EVA (Economic Value Added) analysis takes into consideration the cost of the capital that a company has invested in its operations in order to generate profits. It emphasizes on providing a risk-adjusted return on that capital, rather than focusing solely on profits or revenues. Therefore, the statement that "EVA analysis reflects an emphasis on risk-adjusted return on capital" is true.

EVA Analysis Reflects an Emphasis on Risk-Adjusted Return on Capital