Please Calculate EVA (Economic Value Added) of the company for 2018 and 2019. Information: Operating profit...
Please Calculate EVA (Economic Value Added) of the company for 2018 and 2019.
Information:
Operating profit before tax:
2018: $5.698 (in Million)
2019: $5.700 (in Million)
Tax:
2018: $1.676 (in Million)
2019: $1.600 (in Million)
another information:
average invested capital is $20.308 million for 2018, and $18.091 million for the year 2019, while the cost of capital of 9% for out of 2018 and 2019
Homework Answers
EVA = Net operating profit after tax - [Average capital invested *WACC]
| 2018 | 2019 | |
| Net operating profit after tax[Before tax profit - tax ] |
5.698-1.676 4.022 |
5.700-1.600 4.100 |
| Less: Average capital invested *WACC |
20.308*9% 1.82772 |
18.091*9% 1.62819 |
| EVA | 2.19428 | 2.47181 |
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Please Calculate EVA (Economic Value Added) of the
company for 2018 and 2019.
Information:
Operating profit...
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