economic value added means: An adjustment method for performance evaluation Accounting performance is required for investors Return on investment Let’s say a division gives you a 12 Return on capital invested. The risk associated with the business line of the division would mean that investors will usually need 14 percent on capital investment to cover this risk. This division could be declared bankrupt. The EVA measure measures shareholder value. This Stern-Stewart owns a trademark for this term. (in Stock Market Dictionary)
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