how to calculate Weighted average cost of Capital.
WACC....
Further, what is the purpose of calculating PBIT after deducting Interest after Tax.
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Eva
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EVA = {Net Operating Profit After Tax(NOPAT)- (WACC*Operating Capital)}
NOPAT = (EBIT - Non Operating Income)(1-t)
further WACC = Kd*Wd+ Ke*We+Kp*Wp
all weights to be taken at book value
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