You are the senior accountant for your company. Your manager has just asked you for information on economic value added (EVA). He would like to know why the company is not using EVA it uses financial ratio analysis. Your manager has asked you to prepare a memo to the CEO that discusses the following:
Discuss the EVA concept
How is EVA determined?
Describe how the company can increase EVA.
Discuss why and how EVA relates to financial ratio analysis.