Notes on Creating Value

Notes on Creating Value - Creating Value In business and in...

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Creating Value In business and in real life it is all about the creating value. Economic Value Added is the measure most closely tied to shareholder value creation. EVA represents the return on the assets invested in a business in excess of the financial cost of those assets. EVA : I ROIC (%) - Cost of Capitail (%)] x Capital Employed. "Since EVA is the closest proxy for value creation, we have aligned management incentives with'shareholder interests by tying bonuses to EVA." - Chairman, Quaker Oats In Managerial and Cost Accounting we teach the "value chain" and discuss value adding activities in production. Let's consider the value opportunities available to you on a personal level. Finding Value To find value we could go to a yard sale and buy something at a fraction of its value and sell it on ebay to realize the true value of the item. Creatine Value We create value when we start a business or build a house or create a work of art and benefit from our efforts. Ilolding Vaiue By holding someihing of value over time we can accumuiate wealth.
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Notes on Creating Value - Creating Value In business and in...

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