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Question 86Asked in DSSSB TGT Computer Science (Technical), 12 Sep 2025, Shift 3 (5:00 PM)

In business evaluation, the concept of 'Economic Value Added (EVA)' measures:

  1. Athe financial performance in terms of value creation above the cost of capital
  2. Bthe company's gross profit
  3. Cthe net book value of assets
  4. Dthe company’s revenue growth rate
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Correct answer: (A) the financial performance in terms of value creation above the cost of capital

Explanation

EVA = NOPAT − (capital employed × cost of capital). It measures the value a company creates above the cost of the capital it uses.

From DSSSB TGT Computer Science PYQ (Technical), 12 Sep 2025, Shift 3 (5:00 PM)

This is question 86 of DSSSB TGT Computer Science PYQ (Technical), 12 Sep 2025, Shift 3 (5:00 PM). See all questions of this paper with answers, or attempt the paper as a timed online test to get your score and all-India rank.