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June 2011 Q1 a

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › June 2011 Q1 a

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  • November 30, 2015 at 9:44 am #286349
    chiliz
    Member
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    June 2011 Q1 EVA calculation particularly how they arrived at WACC

    November 30, 2015 at 9:58 am #286352
    Ken Garrett
    Keymaster
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    NOPAT = Op profit WACC = 386 + Non-cash expenses 4 – tax @ 30% = 273 (not 274 as in model answer)

    Charge for use of capital = 1294 (capital employed) x 9% (notional cost of capital) = 116

    EVA = 273 – 116 = 157 (still 1 out compared to model answer)

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