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Application of the Economic Value Added Model on Determination of the Value of Businesses

Author

Listed:
  • Vincent Soltés

    (Technical University of Kosice)

  • Michal Soltés

    (Technical University of Kosice)

Abstract

The EVA index contains many important aspects of the business processes: the size and composition if the invested capital (sum of the equity capital and the loan capital on interest), the costs of the equity capital and loan capital on interest and the efficiency of the profitability of the invested capital. In the near future the EVA index will come to the fore compared to other indexes because it describes the objective business position. It gives considerable information of the performance of the business.

Suggested Citation

  • Vincent Soltés & Michal Soltés, 2002. "Application of the Economic Value Added Model on Determination of the Value of Businesses," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 1(01), pages 47-50.
  • Handle: RePEc:mic:tmpjrn:v:1:y:2002:i:01:p:47-50
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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2002/01/TMP_2002_01_08.pdf
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