The combination of accounting income and corporate finance to measure whether the company's operations have increased stockholder wealth is called the:

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Economic value added (EVA) is the combination of accounting and finance to measure whether the company's operations have increased stockholder wealth. It considers the cost of capital and subtracts it from the operating profit after taxes to determine if the company is generating value for the shareholders. Return on equity (ROE) measures the return generated by the company's equity relative to the value of the equity. The rate of return demanded by the stockholders is the cost of equity, which is used in the calculation of EVA. The price/earnings ratio (P/E ratio) is a valuation ratio that compares the company's stock price to its earnings per share.

The Combination of Accounting Income and Corporate Finance to Measure