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ii) in the eva calculation should the interest paid $213 be added back?
iv) when doing this part of the question. I jumped right into the implication on the performance management however the answer starts by describing what the value chain is. Would you loose marks for not starting the answer with a description of what the value chain does?
(ii) No. The answer starts with operating profit and this is already before tax. The only interest-related adjustment is for the tax relief on interest 213 x 25% = 53.
(iv) No. The first two paragraphs of this part of the model answer would not attract many (or any) marks. You would be expected to use the value chain to help the company.
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