[ldorey]

WACC for EVA was definitely 11%. The cost of debt was already post tax so it did not need to be adjusted (1-t). Ratio of Debt to Equity was 1:3 so 25%: 75%.

Adjusting the Capital Employed figure….. the movement on the provision in the year should have been added back.

I ended up with one negative and one positive EVA for the divisions.

Also noted they had two different rates for depreciation, so add back Book value of Dep’n, less economic dep’n.

Fairly sure I would have at least 1 or 2 things wrong in that calculation. Surprised it was worth 10 marks though, as it didnt seem to need narrative (description of results was next question)

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