Which statement is true concerning economic value added (EVA)?
A)EVA indicates how much employee wealth is being created by company managers.
B)EVA indicates how much shareholder wealth is being created by company managers.
C)EVA indicates how much customer wealth is being created by company managers.
D)EVA indicates how much national wealth is being created by company managers.

Question

Quizplus · Accepted Answer

Economic value added (EVA) is a financial performance measure that shows the amount of value created by a company above the cost of capital. Specifically, it is a measure of how much shareholder wealth is being created by company managers. Therefore, option B is the correct answer. Option A, C, and D are incorrect because they are not related to the definition of EVA.

Which Statement Is True Concerning Economic Value Added (EVA)