[welly1]

Hi Cath

I see this question was asked before on 18 January 2018 and you addressed it.

I have copied the response for the benefit of others. It reads as follows:

Hi, Thanks for your question.
The interest costs in EVA calcs are already deducted by the WACC % charge on the cost of capital so we don’t deduct them again.

We find EVA by taking profit after tax but before interest. The adjustment amount you see in exercise 5 is adding back the tax effect.

Kind Regards

[Author]

Posts