Question
A company has a Net Operating Profit After Tax (NOPAT)
of ₹60 lakh. Its total capital employed is ₹400 lakh and Weighted Average Cost of Capital (WACC) is 12%. Compute the Economic Value Added (EVA) and interpret its significance.Solution
EVA = NOPAT - (Capital Employed × WACC) = 60 - (400 × 12%) = 60 - 48 = ₹12 lakh. A positive EVA indicates value creation.
More Accounts Questions
45% of 1020 + ?% of 960 = 747
12.5% of (100 + ?) = 40
(342 – 20% of 5280) = ? ÷ 3
What will come in the place of question mark (?) in the given expression?
(√? - 17) X 40 + 145 = 1000 - 15
If 1560 ÷ 30 + 2025 ÷ 45 - z + 33 × 7 = 1848 ÷ 24 × 234 ÷ 39, then the value of z is:
Find the value of (x + y)² - (x - y)², where x = 15 and y = 7.
(25.111 % of 200) × 26 ÷ 12.99 – 18.88 × 15.82 + 150.33% of 3√ 4917 = ? – 200
...Find the simplified value of the given expression:
(12 ÷ 3 of 2 + 11 of 2) ÷ 4
