ECONOMIC VALUE ADDED

Answers were Sorted based on User's Feedback



ECONOMIC VALUE ADDED..

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

ECONOMIC VALUE ADDED..

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

ECONOMIC VALUE ADDED..

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

Post New Answer

More Banking Finance Interview Questions

what is contingent liability amortization share premium capital marketisation depreciation trial balance working capital how gross profit is calculated different types of statements prepared by a company.

1 Answers   BRS, FactSet Systems,


What is a stale cheque?

0 Answers   State Bank Of India SBI,


What is a Joint Stock Company?

0 Answers   Joint Stock Company,


How is an investment decision different from a financing decision?

5 Answers  


What are kiosks? These days' banks have come up with different kiosks. Name them.

0 Answers   IBPS,






Have you applied to any other areas apart from banking?

0 Answers   SEBI,


Is The Installation Labor For A New Asset Expensed Or Included In The Cost Of The Asset?

0 Answers  


How do you calculate the rate of return on a stock?

0 Answers  


What is a demand draft and overdraft?

0 Answers   State Bank Of India SBI,


What is 'smart card'?

0 Answers  


How can we utilize your skills?

0 Answers   State Bank Of India SBI,


What is Credit Risk?

6 Answers  


Categories
  • Business Administration Interview Questions Business Administration (517)
  • Marketing Sales Interview Questions Marketing Sales (1279)
  • Banking Finance Interview Questions Banking Finance (3208)
  • Human Resources Interview Questions Human Resources (745)
  • Personnel Management Interview Questions Personnel Management (68)
  • Hotel Management Interview Questions Hotel Management (29)
  • Industrial Management Interview Questions Industrial Management (113)
  • Infrastructure Management Interview Questions Infrastructure Management (14)
  • IT Management Interview Questions IT Management (97)
  • Supply Chain Management Interview Questions Supply Chain Management (16)
  • Operations Management Interview Questions Operations Management (39)
  • Funding Interview Questions Funding (79)
  • Insurance Interview Questions Insurance (494)
  • Waste Management Interview Questions Waste Management (1)
  • Labor Management Interview Questions Labor Management (48)
  • Non Technical Interview Questions Non Technical (73)
  • Business Management AllOther Interview Questions Business Management AllOther (546)