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    Compare EVA with EPS

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    Economic value added is sometimes thought of as a measure of the efficiency with which a company uses its productive resources.

    Assuming this is true, how can we compare EVA with EPS?

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    Solution Preview

    Economic Value Added (EVA) is a financial performance method to calculate the true economic profit of a corporation. EVA can be calculated as net operating after taxes profit minus a charge for the opportunity cost of the capital ...

    Solution Summary

    This solution explains how to compare economic value added (EVA), earnings per share (EPS).