EC Ltd., has an Economic Value addition of ₹40,000 as on 31st March, 2022. During the year, its net operating profit before tax is ₹72,00,000 and Weighted Average Cost of Capital is 12.5%. If the assessable tax rate of t

CS Executive · Corporate and Management Accounting · PYQS · December 2022
EC Ltd., has an Economic Value addition of ₹40,000 as on 31st March, 2022. During the year, its net operating profit before tax is ₹72,00,000 and Weighted Average Cost of Capital is 12.5%. If the assessable tax rate of the company is 30%, the amount of capital employed would be :
(A) ₹4,00,00,000
(B) ₹3,76,00,000
(C) ₹3,32,00,000
(D) ₹2,67,46,000

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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