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 |
How does rupee strengthen when the Reserve Bank of India sells dollars in the market?
What are preference shares? What are their features?
What is dummy account? Is there any difference between dummy account and suspense account?
Ratio for WC?
4 Answers Hindustan Unilever Limited, Kensoft Infotech,
What is 'fixed deposit account'?
when will establish first stock exchange?
What are the most essential qualities of a Banker?
What is Paid up Capital?
35 Answers Cap Gemini, H M Shah Associates, Joint Stock Company,
What are the limitations of financial statements?
Why You Want To Enter In Banking Industry?
What are the contents in lease agreement?
what is weighted average rating factor?
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)