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10. value added to a firm



ment: Chapter 02- Financial St o Assignment Average: /5 mpts: tion: Due to a bug in Google Chrome, this page may not function
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Ans 1 - The EVA metric effectively measured the amount of shareholders wealth that the firm's management has added to the firm's value during a specific period of time. A negative   EVA value indicates that the firm's manager reduced the firm's value and shareholder might have earned more value by investing in some other investment with the same risk level.

Ans 2 - Economic value added ( EVA ) measures the amount by which profit exceeds or fall short of tge cost of capital in any one period.

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