Eva

how to calculate Weighted average cost of Capital.

WACC....

Further, what is the purpose of calculating PBIT after deducting Interest after Tax.

 

 

Replies (1)

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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