The vice president, financing of a firm, notes that although performance of the business as measured by conventional accounting measures has steadily improved, the share price however, has been falling.
She tries to use the theory of economic value added to get to the bottom of the puzzle.
Learning Objective: Students would learn about the limits of some of the conventional financial measures of performance along with the notions underlying the EVA strategy and how EVA is computed. Furthermore, another object is to learn how EVA can be applied to an actual business to help with management of assets along with the capital structure, divestiture, and settlement choices.
Publication Date: 05/15/1996
This is just an excerpt. This case is about Finance
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