Alpha 12 07

Hi Gromit,

Just regarding EVA. For the Alpha division question, I see they used Profit after tax figure for NOPAT calculation. If you used Profit before tax figure, would that be incorrect? I see article states you can use either but just when I try to use PBT, I can’t get my answer to tie out and difference is around the treatment of the tax.

You can outline how the tax should be treated if I did use the Profit before tax figure so I know how to handle this if they don’t give PAT in exam?

Thanks,

Ed