OK$,$ given that description, here$$s a question for you: Compared to the book value, what is the advantage of using the EVA to evaluate the performance of Atherton$$s management?

RAFAEL: Give me a second to think. $..$ OK$,$ it$$s better to evaluate the performance of Atherton$$s management by using the company$$s EVA rather than the book value of its shareholders$$ equity because the better the managerial decisions being made, the the after$-$tax net operating income earned, the the difference between this net operating income and the cost of capital needed to generate that income, and the the EVA, or true economic profit, earned by the company.

ASHA: Nicely done! Does this make your reading of Atherton$$s annual report easier?