McqMate
| Q. |
How is economic value added (EVA) calculated? |
| A. | It is the difference between the market value of the firm and the book value of equity. |
| B. | It is the firm's net operating profit after tax (NOPAT) less a dollar cost of capital charge. |
| C. | It is the net income of the firm less a dollar cost that equals the weighted average cost of capital multiplied by the book value of liabilities and equities. |
| D. | None of the above are |
| Answer» B. It is the firm's net operating profit after tax (NOPAT) less a dollar cost of capital charge. | |
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