Economic Value Added (EVA) is :

CS Executive · Corporate and Management Accounting · PYQS · June 2024
Economic Value Added (EVA) is :
(A) "Net Operating Profit after Taxes"- (Equity Capital x % Cost of Equity Capital)
(B) "Net Operating Profit before Taxes "- (Equity Capital x % Cost of Equity Capital)
(C) "Net Operating Profit after Taxes"- (Equity & Pref. Capital x % Cost of Equity Capital)
(D) "Net Operating Profit before Taxes "- (Equity & Pref. Capital x % Cost of Equity Capital)

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Management Accounting

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