@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.