X
Welcome to the world's #1 website about management.
Why register?
- Discover 1000s of knowledge centers.
- Learn from colleagues and experts.
- By signing up you get full access to all knowledge centers and discussion forums, including Economic Value Added.
Log in
|
What is the Impact of Debt on EVA?
Kashif Iqbal, Student (University), Member
What is the impact debt is having on EVA? Thanks for your help....
|
|
| |
|
The Influence of Debt on EVA
Jaap de Jonge, CEO, Netherlands, Editor Having debt costs money (interest).
The payments for the debt are part of the 'Capital charges' in the formula in the article.
So the higher... |
|
| |
|
Debt Often Increases EVA
GUMB, Professor, France, Member Jaap's answer is partially OK. But having no debt also costs money: it is what they call cost of equity.
Often the latter is higher than the cost... |
|
| |
|
The Impact of Debt in EVA
Jaap de Jonge, CEO, Netherlands, Editor @ Gumb : Ah yes, you mean to say that it's better from an EVA point of view to acquire $ 1 million through taking deb... |
|
|
|
|
|
Special Interest Group Leader
|
|
|
Economic Value Added
|
|
|
|
|
|
|
|
