ECONOMIC VALUE ADDED
Answers were Sorted based on User's Feedback
Answer / guest
One of the important objective of wealth maximisation
difference between Percentage of Return On investment and
the Perecentage of Over all cost of capital.it is one of
the performance indicator for the effectine costing
decisions.
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / soumya
A measure of a company's financial performance based on the
residual wealth calculated by deducting cost of capital
from its operating profit (adjusted for taxes on a cash
basis). (Also referred to as "economic profit".)
The formula for calculating EVA is as follows:
= Net Operating Profit After Taxes (NOPAT) - (Capital *
Cost of Capital)
This measure was devised by Stern Stewart & Co. Economic
value added attempts to capture the true economic profit of
a company
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / dk
Economic Value Added (EVA), or economic rent, is a widely
recognized tool that is used to measure the efficiency with
which a company has used its resources. In other words,
EVA is the difference between return achieved on resources
invested and the cost of resources. Higher the EVA, better
the level of resource unitization.
| Is This Answer Correct ? | 0 Yes | 0 No |
What is Subsidy?
What are different types of Risks?
45 Answers CNG, COCO Traders, Garware, Human Resources, ICICI, Project Management,
What is SWIFT Code?
0 Answers State Bank Of India SBI,
How the price of a stock is calculated in Indian stock market (NSE or BSE)?
What is Statement in Lieu of Prospectus?
0 Answers Joint Stock Company,
Explain liquid ratio/ acid ratio/ quick ratio.
What is RONA?
what is cenvat
What are the additional covenants in term loan agreement to protect lenders?
What could a company do with excess cash on the balance sheet?
What are FDI (Foreign direct investment) and FII (Foreign institutional investors) and what is the difference in these?
Describe the dynamics of culture as a multi-level, multi- layer construct.
Business Administration (517)
Marketing Sales (1279)
Banking Finance (3208)
Human Resources (747)
Personnel Management (68)
Hotel Management (29)
Industrial Management (113)
Infrastructure Management (14)
IT Management (97)
Supply Chain Management (16)
Operations Management (39)
Funding (79)
Insurance (494)
Waste Management (1)
Labor Management (48)
Non Technical (73)
Business Management AllOther (546)