Special Studies in Finance Practice Problem and Solution for Exam # 1


0

Economic Value Added

 

Q) Pizza Hut Ltd has existing in which it has capital invested of Rs.150 crores. The after tax operating income is Rs20 crores and company & company has a cost of 12%. Estimate the Economic Value Added (EVA) of the firm.

Solution-

Capital employee = 150 crores

       NOPAT= 20 crores

       WACC= 12%

        EVA= NOPAT-(WACC x CE)

                = 20-(12% x 150)

                = 2 crores

 

 


Like it? Share with your friends!

0

52 Comments


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

This Website Is For Sale. Email us an offer we cannot refuse on [email protected] :)

X
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format