--%>

Main advantage of EVA

The main advantage of using EVA is that it is simple to calculate and understand. It uses simple measures like operating profits and cost of capital terms which are widely known and accepted in the financial arena. It helps the managers to assess their assts and income carefully. The concept is also well understood by the shareholders as they can understand by comparing EVA of different years and analyze the wealth that has been created for them by use of their funds. It helps the managers to take principal financial decisions w.r.t creation of wealth.

   Related Questions in Business Economics

  • Q : Demand supply with the aim of diagrams

    with the aim of diagrams show the difference between A change in demand and A change in quantity demand

  • Q : Why producers not be able to find

    Why producers not be able to find enough paying buyers for “public goods”?

  • Q : Scientific method how does it relate to

    What is the scientific method and how does it relate to theoretical economics?  What is the difference between a hypothesis and an economic law or principle?

  • Q : Guideline for monetary policy using

    Question: In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables? Answer: <

  • Q : Local expenditures and receipts for all

    Elucidate the Local expenditures and receipts for all local governmental units in 1996?

  • Q : Importance of Economics Importance of

    Importance of Economics:Economics has become one of the major branches of social sciences. This is of enormous practical value in our day by day life. In pure sciences, we study the subject

  • Q : Self-interest theory demonstration by

    The model of _____ was demonstrated by _____ along with the quote, “The loss of a small finger would remain the average European by sleeping which night, ... but, given he never observed them, he will snore with the most profound security over the loss of millio

  • Q : Explain the volume and pattern of U.S.

    Explain the volume and pattern of U.S. and World Trade?

  • Q : Illustrate the rate of exchange of two

    Illustrate the rate of exchange of two products?

  • Q : Specialization in division of labor I

    I have a problem in economics on Specialization in division of labor. Please help me in the following question. Jennifer writing computer code whereas Melissa handles the business features of Econo-Software would be an illustration of specialization i