In September 2024
Answer to Question #181563 in Economics of Enterprise for Basit
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.
The value of EVA 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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