Market value added and Medium term notes: Difference between pages

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(MVA). The excess of the actual or theoretical market value of a firm over its book value.
(MTNs).  


Taking a simplified example, for an all-equity financed firm with an actual or theoretical market capitalisation of $130m and book value of equity $100m:
Debt securities that range in maturity from about nine months to several years (sometimes as long as 30 years) and are in bearer form.
MVA = $130m - $100m = $30m.
 
They are normally issued as part of an MTN programme where documentation exists to cover the programme and is regularly updated.


In practice a number of adjustments would be made both to the market values and to the book values used in the calculation of the MVA. 
So in practice the assessment of MVA is both more complicated, and arguably more subjective, than the simple calculation illustrated above.


== See also ==
== See also ==
* [[Book value]]
* [[Bearer instrument]]
* [[Economic value added]]
* [[Euro Medium Term Note]]
* [[Excess Return]]
* [[MTN programme]]
* [[Market value]]
* [[Security]]
* [[Shareholder value]]


[[Category:Long_term_funding]]

Revision as of 09:13, 9 October 2013

(MTNs).

Debt securities that range in maturity from about nine months to several years (sometimes as long as 30 years) and are in bearer form.

They are normally issued as part of an MTN programme where documentation exists to cover the programme and is regularly updated.


See also