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Foundations of Economic Value Added, 2nd Edition

Foundations of Economic Value Added, 2nd Edition

James L. Grant

ISBN: 978-0-471-47181-3

May 2003

324 pages



An updated look at the role of economic profit analysis in the process of wealth creation
Grant explains the pivotal role of economic value added (EVA) in the theory of finance, how to measure EVA with standard accounting adjustments, how to use EVA to value companies and their stock, and how to use economic profit principles to identify wealth-creating firms, industries, and even market economies.
Foreword by James A. Abate.


About the Author.

Chapter 1: The EVA Revolution.

Chapter 2: EVA in the Theory of Finance I: Investment Decisions.

Chapter 3: EVA in the Theory of Finance II: Financing Decisions

Chapter 4: Basic Economic Profit.

Chapter 5: Financial Characteristics of Wealth Creators (and Destroyers).

Chapter 6: Enterprise Valuation I: Free Cash Flow Model.

Chapter 7: Enterprise Valuation II: Economic Profit Model.

Chapter 8: Traditional Measures of Profitability and Success.

Chapter 9: EVA Accounting Adjustments.

Chapter 10: Role of Economic Depreciation.

Chapter 11: Estimating the Cost of Capital.

Chapter 12: Estimating MVA with Published Financial Reports.

Chapter 13: Company Analysis Using EVA

Chapter 14: Industry Analysis Using EVA.

Chapter 15: Macroanalysis Using EVA