Back to Assignment Attempts: Keep the Highest. /1 7. The relationship between the book value of shareholders' equityand the firm's Market Value Added (MVA) and Economic Value Added (EVA) Yesterday, Extensive Enterprise Inc. released its 2018 annual report on the company's website. While reading the report for her boss, Claire come across several terms about which she was unsure. She loaned around the wall of her cubide and asked her colleague, Alexis, for help. od CLAIRE: Alexis, do you have a second to help me with my reading of Extensive's annual report? I've come across several unfamiliar terms, and I want to make sure that I'm interpreting the date and management's comments correctly For example, one of the footnotes to the financial statements uses the book value of Extensive's shares," and then in another place, it is "Market Value Added I've never encountered those terms before Do you know what they're talking about? ALEXIS: Yes, I do let's see if we can make these terms make sense by talking through their meaning and their significance to investors The term book value has several uses. It can refer to a single asset or the company as a whole. When referring to an individual asset, such as a piece of equipment, book value relers to the asset historical value or original purchase price adjusted for any accumulated deprecation or amortization expense. The value or difference between these two values, is called the asset's book value. In contrast, when the term refers to the entire company, it means the total value of the company's as reported the firm's CLAIRE: That makes sense. So, what makes this value important to investors is that it value that can change-but only due to a couple of events, including the of Treasury stock, the sale of new common or preferred sares, and the payment of Equally important, it change in response to changes in the market prices of the tim's shares Back to Assignment Attempts: Keep the Highest. /1 7. The relationship between the book value of shareholders' equityand the firm's Market Value Added (MVA) and Economic Value Added (EVA) Yesterday, Extensive Enterprise Inc. released its 2018 annual report on the company's website. While reading the report for her boss, Claire come across several terms about which she was unsure. She loaned around the wall of her cubide and asked her colleague, Alexis, for help. od CLAIRE: Alexis, do you have a second to help me with my reading of Extensive's annual report? I've come across several unfamiliar terms, and I want to make sure that I'm interpreting the date and management's comments correctly For example, one of the footnotes to the financial statements uses the book value of Extensive's shares," and then in another place, it is "Market Value Added I've never encountered those terms before Do you know what they're talking about? ALEXIS: Yes, I do let's see if we can make these terms make sense by talking through their meaning and their significance to investors The term book value has several uses. It can refer to a single asset or the company as a whole. When referring to an individual asset, such as a piece of equipment, book value relers to the asset historical value or original purchase price adjusted for any accumulated deprecation or amortization expense. The value or difference between these two values, is called the asset's book value. In contrast, when the term refers to the entire company, it means the total value of the company's as reported the firm's CLAIRE: That makes sense. So, what makes this value important to investors is that it value that can change-but only due to a couple of events, including the of Treasury stock, the sale of new common or preferred sares, and the payment of Equally important, it change in response to changes in the market prices of the tim's shares