June 2011 Q1 a

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November 30, 2015 at 9:44 am #286349
chiliz
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June 2011 Q1 EVA calculation particularly how they arrived at WACC
November 30, 2015 at 9:58 am #286352
Ken Garrett
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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)
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