Following is the information of ABC Limited : Equity Share Capital = ₹ 1,200 lakhs 12% Debenture = ₹ 600 lakhs WACC = 12% Financial Leverage 1.5 times (Assume a 30% tax rate) EVA is:

CS Executive · Corporate and Management Accounting · PYQS · June 2024
Following is the information of ABC Limited : Equity Share Capital = ₹ 1,200 lakhs 12% Debenture = ₹ 600 lakhs WACC = 12% Financial Leverage 1.5 times (Assume a 30% tax rate) EVA is:
(A) ₹ 216
(B) ₹ (151.20)
(C) ₹ 64.8
(D) ₹ (64.8)

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Management Accounting

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