Equity Valuation【Reading 42】Sample
Market value added is calculated as: A)
| net operating profit after taxes minus a charge for total capital. |
| B)
| market value of the company minus a charge for equity capital. |
| C)
| market value of the company minus total capital. |
|
Market value added is the market value of the company minus total capital. It is used to measure the effect on value of management’s decisions since the firm’s inception. |