Economic value added is synonymous with shareholder wealth created by an investment center.

Question

Quizplus · Accepted Answer

Economic value added (EVA) is a measure of the value created by an investment center. It is a financial performance metric that calculates the amount of value that has been generated by an organization, subtracting the cost of capital used. This is often referred to as shareholder wealth created as it indicates the additional value that has been generated for shareholders beyond their required rate of return. Therefore, option A is correct.

Economic Value Added Is Synonymous with Shareholder Wealth Created by an Investment