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june 2012 exam question 1 eva

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › june 2012 exam question 1 eva

  • This topic has 2 replies, 2 voices, and was last updated 12 years ago by lindacarson.
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  • October 16, 2012 at 8:03 pm #54730
    lindacarson
    Member
    • Topics: 2
    • Replies: 2
    • ☆

    how do you calculate the eva in question 1, I thought the wacc was 250./600.*0.125
    plus 350/600 * 0.0588 being the post tax cost of debt but i don’t get the right answer when I take this away from 600,000

    October 17, 2012 at 5:35 am #105622
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10591
    • ☆☆☆☆☆

    Additional note 2 says “John has estimated the overall cost of capital to be 12·5%.”, so the deduction from NOPAT is 600000 x 12.5%.

    October 18, 2012 at 8:23 pm #105623
    lindacarson
    Member
    • Topics: 2
    • Replies: 2
    • ☆

    thanks

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