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Which profit (operating profit or profit before tax or profit after tax) should we use as the starting point of our EVA calculation?
Depemding on the information provided in the question, you can start with any of these.
For example, starting with operating profit of 10,000 less 22% tax gives 7,800. The adjustment for advertising and doubtful debts provision then give:
7,800 + 450 – 200 = 8050, as before.
Depemding on the information provided in the question, you can start with any of these.
For example, starting with operating profit of 10,000 less 22% tax gives 7,800. The adjustment for advertising and doubtful debts provision then give:
7,800 + 450 – 200 = 8050, as before.
Depemding on the information provided in the question, you can start with any of these.
For example, starting with operating profit of 10,000 less 22% tax gives 7,800. The adjustment for advertising and doubtful debts provision then give:
7,800 + 450 – 200 = 8050, as before.
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