Market Value Added is the difference between the capital contributed to the company by bondholders and shareholders and the final market value of the product.
The formula used to find market value added is:
Market Value Added = Market Value - Capital Invested
if bondholders and shareholders have contributed $1,000,000 to form Company SASA and during its existence since inception and it is currently listed on the stock exchange with a stock market value of $2,000,000, calculate MVA value? What does the result of your calculations tell you about the performance of company SASA? WHY MVA MATTERS?