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 leverage?
6 Answers ACC, Idbi Bank, Reliance,
What are the contents in lease agreement?
What is budget?
What are the additional covenants in term loan agreement to protect lenders?
What is pgdb program?
Tell about the fixed deposits?
0 Answers State Bank Of India SBI,
What is Disinvestment?
What is our current stock price?
What Is A Mutual founds
17 Answers Franklin Templeton,
Is the Indian economy in the developing, underdeveloped or the developed state?
0 Answers State Bank Of India SBI,
Role of Bhartiya Mahila Bank in women upliftment?
0 Answers State Bank Of India SBI,
What is a DMAT account?