Which of the Following Statements Is Correct?
A) MVA Gives $\times$

question 44

Multiple Choice

Which of the following statements is correct?

• A) MVA gives us an idea about how much value a firm's management has added during the last year.
• B) MVA stands for market value added, and it is defined as follows:
• MVA = (Shares outstanding) \(\times\) (Stock price) + Book value of common equity
• C) EVA stands for economic value added, and it is defined as follows:
• EVA = (Operating capita) \(\times\) (ROIC - WACC)
• D) EVA gives us an idea about how much value a firm's management has added over the firm's life.

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