What is the Impact of Debt on EVA?

Economic Value Added > Forum > What is the Impact of Debt on EVA?

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....Sign up

The Influence of Debt on EVA
Jaap de Jonge, Editor, Netherlands
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...Sign up

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...Sign up

The Impact of Debt in EVA
Jaap de Jonge, Editor, Netherlands
@Gumb : Ah yes, you mean to say that it's better from an EVA point of view to acquire $ 1 million through taking deb...Sign up

Debt Effect on Cost of Capital and the Levered Beta
Mostafa Eldiwany, Manager, Egypt, Member
@Jaap de Jonge (Editor): I do believe that taking a lot of debt will increase the beta if it is levered to the compa...Sign up

Metric of Debt to Equity a Crucial Parameter for EVA
Mehul Doshi , CxO / Board, India, SIG Leader
Whether debt is good or bad is subjective. But if the ratio is skewed and not balanced it definitely has an impact on EVA. Debt to equity ratios in a ...Sign up

Special Interest Group Leader
Mehul Doshi
CxO / Board

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