how to calculate Weighted average cost of Capital.
WACC....
Further, what is the purpose of calculating PBIT after deducting Interest after Tax.
Rahul
(Chartered Accountnat CS)
(1585 Points)
Replied 13 August 2013
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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