The relationship between the book value of shareholders' equityand the firm's Market Value Added (MVA) and Economic
Question:
The relationship between the book value of shareholders' equityand the firm's Market Value Added (MVA) and Economic Value Added (EVA)
Yesterday, Allied Biscuit Co. released its 2018 annual report on the company’s website. While reading the report for her boss, Asha came across several terms about which she was unsure. She leaned around the wall of her cubicle and asked her colleague, Rafael, for help.
ASHA: Rafael, do you have a second to help me with my reading of Allied Biscuit’s annual report? I’ve come across several unfamiliar terms, and I want to make sure that I’m interpreting the data and management’s comments correctly.
For example, one of the footnotes to the financial statements uses “the book value of Allied Biscuit’s shares,” and then in another place, it uses “Market Value Added.” I’ve never encountered those terms before. Do you know what they’re talking about?
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones