leannadoughty06
leannadoughty06
09.07.2020 • 
Business

During the 1990s, the consulting firm Stern, Stewart & Company developed the concept of Market Value Added, or MVA, to better assess management’s performance in maximizing their shareholders’ wealth. To achieve this, a firm’s MVA is computed as the between (of) the value and the value of Galaxy’s shareholders’ equity. OK, now here’s a question for you: Compared to the book value, what is the advantage of the MVA as a means of evaluating management’s performance?

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