Q 53

Kevin is an employee in the finance department at Easy Trader Co. and is performing some financial analysis on the company's current year's performance. Before he can begin looking at a variety of nonfinancial factors, including customer conversion rates and internal promotion scores, he will need to evaluate some financial performance measures. Which of the following provides the most accurate rationale for evaluating economic value added? O Understanding the cash implications of a company's primary operating activities O Evaluating income earned beyond the minimum required investment O Evaluating profitability using a consistent measure like earnings without interest O Evaluating after-tax income earned beyond the company's cost of capital on its invested capital