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Economic Value Added (EVA) at its core measures:
AOperating profit after tax minus a charge for capital employed
BAccounting profit before interest and tax (within the standard regulatory framework)
CRevenue minus cost of goods sold
DNet income minus depreciation
Answer & Solution
Correct answer: A. Operating profit after tax minus a charge for capital employed
1. Identify what the question asks: this concept maps to eva (§6.3).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (A).
_Source: ICAI BoS CA Final Paper 2, Ch 13 "Business Valuation"_
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