Describe the difference between the Economic Value Added (EVA) and the Market Value Added (MVA) approach to determining stockholder wealth
What will be an ideal response?
EVA is the difference between a firm's return on total capital and its cost of capital, while MVA is the difference between the market value (equity plus debt) of a firm and the amount of capital investors have paid into the company.
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When the power company decides to use manpower to bury its lines, it directly answers the ________ question
A) what B) for whom C) how D) why E) when
What is Pareto optimality?
What will be an ideal response?
In Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the desired (and current) reserve/deposit ratio is 15 percent. If commercial banks borrow 100 econs in reserves from the Central Bank through discount window lending, then the money supply in Macroland will ________, assuming that the public does not wish to change the amount of currency it holds.
A. increase to 4,100 econs B. decrease to 1,900 econs C. increase to 3,133 econs D. increase to 4,667 econs
If the multiplier = 2.5, the MPC would be:
A. 0.25. B. 0.4. C. 0.6. D. 0.75.