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Posted: October 19th, 2022
For a given year, a companyâs economic value added measure
For a given year, a companyâs economic value added measure (EVA is a registered trademark of Stern Stewart & Co.) will be positive if the:a. firm has a net operating profit after tax greater than the market value of the debt capital employed.b. firmâs MVA is positive.c. earns a return greater than its cost of capital.d. firm has a net operating profit after tax greater than the book value of the capital employed.
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