Multiple choice general knowledge

Market Value Added

  1. Earnings Per Share

  2. Computes the excess of market value of the firm over total historical investments

  3. Computes the return to shareowners that exceeds the minimum return on investment that shareowners require

  4. B and C
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Market Value Added (MVA) specifically measures the excess of the market value of a company over the capital invested in it. MVA = Market Value of Firm - Total Capital Invested, showing how much value management has created beyond what investors originally contributed. Option C describes Economic Value Added (EVA), which is different from MVA.

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