The Market Value Added (MVA) is the .
A)indicator of how successful a firm has been at increasing its financing its assets
B)return on total capital minus cost of capital
C)indication of an increase in operating efficiency
D)positively related to the present value of all expected future EVA.

Question

Quizplus · Accepted Answer

MVA measures the difference between the market value of a company and the total amount of capital that has been invested in the company. It is expected that the MVA will be positively related to the present value of all expected future Economic Value Added (EVA) of the company. Therefore, option D is the correct answer. A, B and C are incorrect choices as they do not accurately describe what MVA is.

The Market Value Added (MVA) Is the