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What is Economic Value Added (EVA)?
- A value-based financial performance measure
- A measure reflecting the absolute amount of shareholder value created or destroyed during each year
- A useful tool for choosing the most promising financial investments
- An effective protection against shareholder value destruction
- A tool suitable to control operations
- A measure highly correlated with stock prices
- A measure that can be maximized - EVA has not steering failures like ROI and EPS (maximizing these measures
might lead to not optimal outcome; not max. shareholder value)
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