Dear tutor,
Here they have taken the Operating proft to calculate and not the PBT figure.
I took the PBT and deducted tax - however mine answer was wrong.
Should Operating proft figure always be used if given in the question instead to deducting interest after tax etc?
thank you
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June 2011 EVA question 1
6y ago#1EVA measure divisional performance. To base this on a figure after the deduction of non-controllable and arbitrary head office charges does not seem a good approach.
See first paragraph of the answer under the heading 'Divisional performance measures'.
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