Using capital employed, compute the economic value added (EVA) with the help of following information : 2011-12 (₹) 2012-13 (₹) 2013-14 (₹) Equity 10,00,000 15,00,000 17,00,000 Debt (10%) 5,00,000 7,00,000 7,00,000 Profi

CS Professional · Financial, Treasury and Forex Management · PYQS · December 2014
Using capital employed, compute the economic value added (EVA) with the help of following information : 2011-12 (₹) 2012-13 (₹) 2013-14 (₹) Equity 10,00,000 15,00,000 17,00,000 Debt (10%) 5,00,000 7,00,000 7,00,000 Profit after tax 2,00,000 4,00,000 8,00,000 Risk-free rate of return is 7%. Beta (β) = 0.9, market rate of return = 15%. Applicable tax rate is 40%.

Topics: Performance Measurement

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