Answer to Question #180182 in Economics of Enterprise for hafsa

Question #180182

a.      If the wealth of the stockholder is decreasing ever since he hired the new manager, using EVA rule of thumb explain what would be the value of EVA and what is its economic interpretation. 



1
Expert's answer
2021-04-13T07:07:06-0400

The value of EVA (economic value added) would be negative. This means that since the new manager was hired, the company is not generating value from the funds invested into the business.



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