Question 1
Which of the following is
not a step in calculating EVA?
◦ Calculate invested capital.
◦ Calculate the weighted average cost of capital.
◦ Calculate asset turnover.
◦ Calculate net operating profit.
Question 2
In calculating EVA, invested capital is determined by
◦ subtracting total liabilities from total assets.
◦ adding current liabilities to total assets.
◦ subtracting total liabilities from long-term assets.
◦ subtracting current liabilities from total assets.