ECONOMIC VALUE ADDED Definition

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ECONOMIC VALUE ADDED (EVA) measures the difference between the return on a company's capital and the cost of that capital. A positive EVA indicates that value has been created for shareholders; a negative EVA signifies value destruction.

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ANTICIPATED is what is expected.

RATE OF RETURN is the gain or loss for a security in a particular period, consisting of income plus capital gains relative to investment, usually quoted as a percentage. The real rate of return is the annual return realized on that investment, adjusted for changes in the price due to inflation.

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