Economic Value Added (EVA) and the Market Value Added (MVA)
Compute, compare and discuss the Economic Value Added (EVA) and the Market Value Added (MVA) for
1. IBM
? Risk Free rate of 5.0% (30 Year U.S. Treasury Bond)
? Equity premium, 4.0%
? Betas can be found on Yahoo Finance, MSN Money, or Hoovers.
2. HP
? Risk Free rate of 5.0% (30 Year U.S. Treasury Bond)
? Equity premium, 4.0%
? Betas can be found on Yahoo Finance, MSN Money, or Hoovers.
https://brainmass.com/business/weighted-average-cost-of-capital/economic-value-added-eva-market-value-added-mva-136238
Solution Summary
The solution computes, compares and discusses the Economic Value Added (EVA) and the Market Value Added (MVA).
$2.49