It is the measure of a company`s financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis.a.Weighted Average Cost of Capitalb.Weighted Average Cost of Assetsc.Economic Value Addedd.Ergonomic Value Added

It is a measure of performance of a company that focuses more on wealth or value creation for the shareholders rather than just accounting for profits.a.Weighted Average Cost of Capitalb.Weighted Average Cost of Contributionc.Economic Value Addedd.Rate of Return

It is also known as economic profit for its attempts to capture the true economic profit of a company.a.Economic Value Addedb.Weighted Average Cost of Capitalc.Weighted Average Cost of Assetsd.Ergonomic Value Added

In calculating the firm’s Economic Value Added (EVA),Group of answer choicesthe net operating profit after tax is used to offset the capital employed.the capital employed refers to the total equity of the firm.the capital employed is the same as the total asset value of the firm.the weighted average cost of capital (WACC) is the dollar amount of financing cost incurred by the firm.

In financial valuation, EVA means __________________.a.Ergonomic Value Addedb.Economic value of assetsc.Economist Valuation of Assetsd.Economic Value Added

____________ forces you to think about underlying characteristics of the firm, and understand the business.a.Weighted Average Cost of Capitalb.Discounted Cash Flowc.Capitalization on Earningsd.Dilution Method