Asked by Syanindita Kirana Larashira on Jun 30, 2024
Verified
Which of the following information is required to compute SVA (shareholder value added) ?
i. PV of cash flows from operations for a certain time period
Ii Residual value of the business
Iii EVA (economic value added)
A) i and ii
B) i and iii
C) i, ii and iii
D) i
SVA
Stands for Shareholder Value Added, which is a measure used to evaluate a company's ability to generate wealth for its shareholders beyond the required rate of return on their investment.
PV of Cash Flows
The present value of expected future cash flows discounted at the relevant rate, reflecting the current worth of those cash flows.
Residual Value
The estimated value that an asset will have at the end of its useful life, after depreciation has been accounted for.
- Analyze the variations in financial performance indicators and their influence on the process of decision-making.
Verified Answer
Learning Objectives
- Analyze the variations in financial performance indicators and their influence on the process of decision-making.
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