Economic value added (EVA) is

A) the difference between the return on assets and the opportunity cost of capital times the capital base.
B) ROA × ROE.
C) a measure of the firm's abnormal return.
D) largest for high-growth firms.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.