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MVA equals market value of firm minus invested capital. If market cap is Rs 1,200 crore, debt Rs 300 crore and invested capital Rs 1,000 crore, MVA equals:
ARs 300 crore
BRs 500 crore
CRs 200 crore
DRs 900 crore
Answer & Solution
Correct answer: B. Rs 500 crore
1. Identify what the question asks: this concept maps to mvavalue (§6.1).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (B).
_Source: ICAI BoS CA Final Paper 2, Ch 13 "Business Valuation"_
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