Which of the following items would not require an adjustment to capital employed when using economic value added (EVA)?
A) Research & development costs.
B) Advertising expenditures.
C) Preferred stock.
D) Patents developeD.
Stock does not require an adjustment to capital employed;the other three do because they are expensed under GAAP.

Question

Quizplus · Accepted Answer

Preferred stock does not require an adjustment to capital employed in the calculation of EVA, as it is considered part of the capital structure rather than an operating expense that needs to be capitalized.

Which of the Following Items Would Not Require an Adjustment