__________ is equal to after-tax operating profits of a firm less the cost of funds used to finance…
Economic Value Added is after-tax operating profit less a charge for the capital invested in the business. It measures the surplus remaining after the firm has covered the…
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__________ is equal to after-tax operating profits of a firm less the cost of funds used to finance investments.
Answer and explanation
Correct answer D
Economic Value Added is after-tax operating profit less a charge for the capital invested in the business. It measures the surplus remaining after the firm has covered the cost of both debt and equity capital.
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Maharashtra and Goa SET (MH SET)