MADISON:$$That makes sense. So$,$ what makes this value important to investors is that it is$$value that can change$$but only due to a couple of events, including the$$of Treasury stock, the sale of new common or preferred shares, and the payment of$.$ Equally important, it$$change in response to changes in the market prices of the firm$$s shares.

TAJ:$$Right$!$ So$,$ how useful would a firm$$s book value be for assessing the performance of Western G&E$$s management?

MADISON:$$Well$,$ because Western G&E$$s book value$$with changes in the market price of the firm$$s shares, the firm$$s book value$$reflect management$$s efforts to maximize the shareholder wealth and therefore$$be used to evaluate management$$s performance.

Now, what about $$Market Value Added$?$