Which of the following statements is CORRECT?

Question options:

a$)$

EVA stands for economic value added, and it is defined as follows:

EVA $=$ EBIT$(1$ T$)($Investor$-$supplied op$.$ capital$)\backslash$times $($A $$ T cost of capital$).$

b$)$

The primary difference between EVA and accounting net income is that when net income is calculated, a deduction is made to account for the cost of common equity, whereas EVA represents net income before deducting the cost of the equity capital the firm uses.

c$)$

EVA gives us an idea about how much value a firm's management has added over the firm's life.

d$)$

MVA stands for market value added, and it is defined as follows:

MVA $=($Shares outstanding$)($Stock price$)+$ Book value of common equity.

e$)$

MVA gives us an idea about how much value a firm's management has added during the last year.