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economic value added (EVA)

The monetary value of an entity at the end of an time period minus the monetary value of that same entity at the beginning of that time period. - For a company, after-tax earnings minus the opportunity cost of capital. As with any other entity, economic value added essentially measures how much more valuable a company has become during a given time period.

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Baden Business News is provided with the understanding that it does not provide an accounting, tax or legal service. Contact a qualified professional with any questions or concerns about the information presented in this newsletter to investigate how it may apply to your specific situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer.