EVA

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October 11, 2014 at 4:16 am #204126
Fatma
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Please sir I would like your assistance in the following:
when calculating the capital employed to be used in EVA for example for the year 20X7, do we use the capital employed for 20X6 (opening balance for 20X7) or the capital employed in 20X7 (closing balance)?
Thank you in advance.
October 11, 2014 at 9:59 am #204143
John Moffat
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You should use the opening balance (unless, obviously you are told in the question to do different).
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