A key feature of economic value added (EVA) is that it emphasizes after-tax operating income and the actual cost of capital.

Question

Quizplus · Accepted Answer

This statement is true. EVA calculates the economic profit generated by a business by subtracting the cost of its capital from its after-tax operating income. This approach takes into account both the profitability and the efficiency of a company's use of capital.

A Key Feature of Economic Value Added (EVA) Is That