According to the textbook,studies have shown that market value added is a predictor of economic value added.

Question

Quizplus · Accepted Answer

Market value added (MVA) and economic value added (EVA) are related but distinct concepts; MVA is the difference between the market value of a company and the capital contributed by investors, while EVA measures a company's financial performance based on residual wealth. Studies typically show EVA as a predictor of MVA, not the other way around.

According to the Textbook,studies Have Shown That Market Value Added