Economic value added

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Economic value added (EVA®) is after-tax operating income minus the (after-tax) weighted-average cost of capital multiplied by total assets minus current liabilities.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Economic value added (EVA®). After-tax operating income minus the (after-tax) weighted-average cost of capital multiplied by total assets minus current liabilities.
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