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Calculating Market Value Added (MVA) by a Firm | Financial Management

A term closely related to EVA is 'market value added (MVA)'. It is the market value of the capital employed in the firm less the book value of capital employed. MVA is calculated by summing up the paid-up value of equity and preference share capital, retained earnings, long-term and short- term debt and subtracting this sum from the market value [...]

By |2017-12-15T11:18:14+00:00December 15, 2017|Capital|Comments Off on Calculating Market Value Added (MVA) by a Firm | Financial Management

Motives for Holding Cash Balances in a Firm: 5 Motives

The following points highlight the five main motives for holding cash balances in a firm. The motives are: 1. Transaction Motive 2. Precautionary Motive 3. Speculative Motive 4. Future Requirements 5. Compensating Balances. 1. Transaction Motive: Cash balance is required to meet the day to day transactions of business. Firms hold cash for making necessary payments for goods and services [...]

By |2016-12-12T08:06:13+00:00December 12, 2016|Firm|Comments Off on Motives for Holding Cash Balances in a Firm: 5 Motives
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