The Market Value Added (MVA) is ____.
A) an indicator of how successful a firm has been at increasing its financing its assets
B) the return on total capital minus cost of capital
C) an indication of an increase in operating efficiency
D) the present value of all expected future EVA

Question

Quizplus · Accepted Answer

The Market Value Added (MVA) is the difference between the market value of a firm's equity and the book value of equity. It represents the present value of all expected future Economic Value Added (EVA). It is an indicator of how successful a firm has been at creating value for its shareholders. Therefore, option D is the correct choice. Options A, B, and C do not provide an accurate description of MVA.

The Market Value Added (MVA) Is ____