A company's debt and equity have a combined market value of RM1,500 million. Investors have supplied RM1,000 million of capital. What is its market value added?
MVA = market value of the firm − capital invested = 1,500 − 1,000 = RM500 million: the value management has created over the capital put in. RM1,500 million is the market value alone. RM1,000 million is the capital invested. RM2,500 million adds the two. Source: SIDC Module 12 Study Outline (Jul-Dec 2026) Section 8 (Topics 1, 3, 4, 8, 16, 17); Brealey, Myers and Allen, Principles of Corporate Finance (as at October 2026).
Reporting market value instead of the excess over capital.
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