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EVA and the market value of a company
The
market
value
of equity
of a
profitable
company
XXXX Oy
690 MFIM
69 FIM/share
Book
value
of
Equity
500 MFIM
50 FIM/share
Market value
premium
186 MFIM
(Market
Value
Added)
19FIM/share
80 MFIM
12 MFIM
28 MFIM
44 MFIM
60 MFIM
/1.0
/1.41
/1.29
/1.18
/1.09
Hypothetical Example: Company XXXX produces positive EVA that decreases to zero during the forecast period. Thus the present value of EVA is:
0 MFIM
Slide 15 of 21
