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Illustrate the advantages of the economic value added (EVA) over the return on assets (ROA) as measure of financial performance. Successively, explain why, according to
Illustrate the advantages of the economic value added (EVA) over the return on assets (ROA) as measure of financial performance. Successively, explain why, according to some scholars, the EVA measure may induce short-sightedness of managers. Finally, discuss how the EVA measure can be used in firm valuation.
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