Skip to contentSkip to search

Ask the Tutor ACCA APM

June 2011 Q1 a

Jjoseph10y ago
June 2011 Q1 EVA calculation particularly how they arrived at WACC
kengarrettkengarrettTutor10y ago#1
NOPAT = Op profit WACC = 386 + Non-cash expenses 4 - tax @ 30% = 273 (not 274 as in model answer) Charge for use of capital = 1294 (capital employed) x 9% (notional cost of capital) = 116 EVA = 273 - 116 = 157 (still 1 out compared to model answer)
Sign into reply to this topic.