After tax operating profit of an investment less the cost of funds used to finance investment =
Economic Value Added is after-tax operating profit less the capital charge on the funds invested. Deducting this financing cost measures the surplus remaining after…
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After tax operating profit of an investment less the cost of funds used to finance investment =
Answer and explanation
Correct answer B
Economic Value Added is after-tax operating profit less the capital charge on the funds invested. Deducting this financing cost measures the surplus remaining after compensating the providers of capital.
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Kerala SET (LBS Centre)