What is residual income? What is EVA? How does EVA differ from the general definition of residual income?
Define the terms residual income and EVA. Also, describe how these are different in general definitions.
Residual Income:
Residual income can be determined by deducting the minimum dollar return on the operating assets of the company from the amount of operating income.
Economic Value Added (EVA):
Economic value added can be evaluated by deducting the dollar amount of capital employed from the operating income after tax...
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