Shareholder value added may be defined as:
A) corporate value - market value of the company.
B) corporate value - market value of debt.
C) corporate value - present value of liabilities.
D) corporate value - current liabilities.

Question

Quizplus · Accepted Answer

Shareholder value added (SVA) is calculated by subtracting the market value of debt from the corporate value. This represents the value created for shareholders above and beyond what is owed to creditors. Therefore, option B is the correct definition of SVA.

Shareholder Value Added May Be Defined As