Which one of these statements is correct?
A)market value added measures the difference between the total market value and the total book value of equity.
B)net income is also called economic value added.
C)EVA measures the net profit of a firm after deducting the cost of the assets used in the production process.
D)EVA considers the cost of long-term debt financing but excludes the cost of equity financing.

Question

Quizplus · Accepted Answer

Market value added (MVA) measures the difference between the total market value of a company's outstanding shares and the total book value of equity. MVA represents the value that investors have added to the company since its inception through their willingness to invest in the business.

Which One of These Statements Is Correct