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@hermanmiller Economic value added To help us make all the short- and long-term decisions that affect our company and help it to grow, we use a highly respected performance indicator, measurement, and compensation system called "Economic Value Added" (EVA), popularized by the management consultants of Stern, Stewart and Company.

In corporate finance, Economic Value Added (EVA), is an estimate of a firm's economic profit – being the value created in excess of the required return of the company's investors (being shareholders and debt holders).

from WSJ

Should the U.S. Adopt a Value-Added Tax?

Michael J. Graetz, a professor at Columbia Law School, argues that VAT can be good for economic growth. David R. Henderson, an economics professor at the Naval Postgraduate School, says VAT encourages wasteful government spending.

Removing the tampon tax is good politics, but what about the economics? - THE British government currently slaps a 5% Value Added Tax (VAT) on sanitary products. But some view the “tampon tax” as an affront to women, who have little choice but to bear the burden of the levy. The government has been prevented from reducing the rate to zero by European Union rules, wh...

Economic experts in the government had definitely produced a nice way of funding the leading deficit in the history of each and every place, and that is through value added tax, shortened to VAT, which is even called countrywide sales tax.


We are looking for a positive and rising EVA (economic value-added) figure, which represents the economic profit created in excess of the cost of capital

Economic Value Added EVA - YouTube Javier Pontifis. This video explains how to calculate EVA by breaking down each component of the formula, and explaining how to calculate the invested capital component of the formula. It also explains why EVA is a superior calculation to just operating income, as it takes into account the cost of capital.