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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.

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Answer: A) the difference between the return on assets and the opportunity cost of capital times the capital base.

Step-by-step explanation:

The Economic Value Added (EVA) is a metric that is used to find out the economic profit that a company has made.

It is calculated by subtracting the return on assets from the opportunity cost of capital and then adjusting it by the capital base which means that it essentially shows much more the company made than it was required to make based on the capital it invested.

If the figure is positive it means the company mad more than expected which is economic profit. The reverse holds true.

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