Today's hottest financial idea and getting hotter" by FORTUNE magazine, Economic Value Added (EVA) is the hot topic of conversation among Financial analysts and Economist. EVA, a registered trademark of Stern Stewart & Co. is an estimate of a firm's economic profit- being the value created in excess of the minimum required rate of return of the company s investors. Having provided the meaning of the economic profit, it can be understood that a company creates shareholders value only if generates returns in excess of its cost of capital. The excess of returns over cost of capital is simply...