The quest for value : a guide for senior managers / G. Bennett Stewart, III - Details - TroveMarket value added MVA is the difference between the current market value of a firm and the capital contributed by investors. If MVA is positive, the firm has added value. If it is negative, the firm has destroyed value. The amount of value added needs to be greater so than the firm's investors could have achieved investing in the market portfolio, adjusted for the leverage beta coefficient of the firm relative to the market. MVA is economically equivalent to the traditional NPV measure of worth for evaluating an after-tax cash flow profile of a project if the cost of capital is used for discounting.
Best-Practice EVA (eBook)
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In this bestselling classic of financial management, G. Bennett Stewart, III, raises and answers these provocative questions:. More than that, Stewart lays the foundation for EVAr, the financial management and incentive system now in place at nearly companies around the world, and which is rapidly becoming the global standard for corporate governance. Managers, confused about what investors really want, often find it difficult to reach informed decisions regarding business strategy, acquisitions and divestitures, financial structure, dividend policy, and executive compensation. But now an EVAr -based revolution is providing a practical framework that managers can use to build a premium-valued company. The Quest for Value is written for senior management, key operating people, and planning and financial staff.