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
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