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Describe the Purpose of a Management's Discussion and Analysis (MD&A)

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Essay

Describe the purpose of a management's discussion and analysis (MD&A) in the general purpose federal financial report of a federal agency.


Definitions:

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit.

Capital Employed

The total value of all assets used in a business to generate profits, typically calculated as equity plus non-current liabilities.

Economic Value Added

A financial performance metric that calculates the value a company generates from its capital investments, beyond the cost of capital.

Weighted Average Cost Of Capital

The overall rate of return that a company is expected to pay on average to all its security holders to finance its assets.

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