What is a measure of operating performance that indicates how successful the firm has been at increasing its MVA in a given year.
A)Economic value added (EVA)
B)After-tax cash flow (ATCF)
C)Earnings after taxes (EAT)
D)Market value added (MVA)

Question

Quizplus · Accepted Answer

Economic Value Added (EVA) is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis. It shows how successful the firm has been at increasing its value, including MVA, over a given period.

What Is a Measure of Operating Performance That Indicates How