The difference between the pre-strategy and post-strategy values for the business is
A) ROI.
B) EPS.
C) ROE.
D) EVA.
E) MVA.

Question

Quizplus · Accepted Answer

The difference between pre-strategy and post-strategy values for the business is captured by Economic Value Added (EVA). EVA is a financial metric that measures the difference between the net operating profit after taxes (NOPAT) and the cost of capital. It helps to assess the financial performance of the business after implementing a certain strategy or set of strategies. Therefore, option D, EVA, is the best choice. Options A, B, C, and E do not directly capture the difference between pre-strategy and post-strategy values.

The Difference Between the Pre-Strategy and Post-Strategy Values for the Business