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@shereenyap said:
Hi… Im abit confuse for this Q1 EVA adjustment as well.. stated that Debt/Equity is 100%, so in the calculation on WACC isnt it should be =(1 × 16%) , why is (1/2 × 16%) ?????? Anyone could help? Would appreciated alot if someone could help.. thks
Debt/Equity is 100% means debt divides by equity equals to 1, debt equals to equity.
so both E/(E+D) and D/(E+D) should be 1/(1+1)
i suppose your way of calculation means that the company is completed funded by equity.
Then I realised the R&D costs occurred during the present year. So it should be in the next year’s C.E.
