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What is the difference between Market Value Added and Economic Value Added?

Marketing Accounting Auditing Financial Management Finance
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Question added by Jijumon James , SENIOR ACCOUNTANT , BADR AL SAMAA HOSPITAL
Date Posted: 2015/01/16
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Muhammad Atif Saeed Chishti
by Muhammad Atif Saeed Chishti , Assistant Accounts Manager , Sadiq Brothers Group of Companies

Market Value Added (MVA) is the difference between the current market value of a firm and the capital contributed by investors. where: MVA is market value added, V is the market value of the firm, including the value of the firm's equity and debt, and K is the capital invested in the firm.

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