Residual Income VS Economic Value Added

  • Creator
    Topic
  • July 10, 2015 at 5:50 pm #195345
    Anonymous
    Inactive

    I’m reviewing this material and i’m trying to find a simple way of differing RI from EVA.

    Residual Income:

    1. Net Income

    2. Hurdle Rate

    Economic Value Added:

    1. Net Income After Taxes (Not including Interest)

    2. WACC

    Any of you got a better form of being able to explain the difference?

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