EVA®; Shareholder Value Analysis and Sustainability; Internet-Based Research Increasingshareholder value is a key objective for many profit-seeking organizations. As indicated in the chapter, EVA® is meant to approximate economic income and, in this sense, can be viewed as a measureof shareholder value added by the firm during a period. Increasingly, managers are realizing thatshareholder value is enhanced by creating value for employees, customers, suppliers, the community,and other stakeholders. This problem asks you to consider how EVA®, as a measure of economicvalue created during a period, can be used to guide and justify sustainability-related investments.Required1. How is economic value added (EVA®) for any accounting period estimated? How does this financialperformance metric differ from both conventional accounting income and from residual income (RI)?

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter1: An Overview Of Strategic Marketing
Section1.1: Cruising To Success: The Tale Of New Belgium Brewing
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EVA®; Shareholder Value Analysis and Sustainability; Internet-Based Research Increasing
shareholder value is a key objective for many profit-seeking organizations. As indicated in the chapter, EVA® is meant to approximate economic income and, in this sense, can be viewed as a measure
of shareholder value added by the firm during a period. Increasingly, managers are realizing that
shareholder value is enhanced by creating value for employees, customers, suppliers, the community,
and other stakeholders. This problem asks you to consider how EVA®, as a measure of economic
value created during a period, can be used to guide and justify sustainability-related investments.
Required
1. How is economic value added (EVA®) for any accounting period estimated? How does this financialperformance metric differ from both conventional accounting income and from residual income (RI)?

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