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What is the meaning and significance of Economic-Value-Added (EVA) ?

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Question added by Deleted user
Date Posted: 2014/09/03
Osama Mohamed
by Osama Mohamed , plant manager / Senior Project Engineer , Public Works Authority

After-tax profit that exceeds the required minimum return on capital. Computed by deducting the cost of capital (both debt and equity) from the after-tax profit, it is said to be the best measure of the true profitability of an enterprise, and is tied to cash flow and not to earnings per share (EPS).

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