Business Memo



Business Memo

To:

From:

Date:April 18th, 2011

Subject:

Economic Value Added

Economic Value Added or EVA tends to become useful when it comes to determining an economic profit of any firm. It is regarded by many experts as the key factor which tends to drive the policies of the firm. It is also interpreted in the pretext of the value that it stands to be excess of the required return on the part of the investment made both by the shareholders and the debt holders. Economic Value Added is also important because it tends to give out the right idea regarding the net operating profit ...