Which of the Following Information Is Required to Compute SVA

question 42

Multiple Choice

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

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Definitions:

Small Firms

Businesses characterized by a small number of employees, low revenue, or limited market share.

Driving Innovation

The act of pushing forward new ideas, technologies, or methods to create value.

Entrepreneurial Process

A sequence of steps that an individual or group takes to identify a new business opportunity, develop a plan, and then implement the plan to create a new venture.

Innovative Spirit

The inclination or approach to thinking in novel and creative ways to solve problems or generate new opportunities.