Economic value added (EVA) is equal to EBIT(1 – T), or NOPAT, minus the dollar cost of all the firm's investor-supplied capital. The primary difference between EVA and accounting net income is that only the cost of debt (interest charges) is deducted when
yahnihEconomic value added (EVA) is equal to EBIT(1 – T), or NOPAT, minus the dollar cost of all the firm's investor-supplied capital. The primary difference between EVA and accounting net income is that only the cost of debt (interest charges) is deducted when calculating accounting net income whereas the cost of common equity is also deducted when finding EVA. True or false?
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