Economic Value Added

FINANCIAL MANAGEMENT ASSIGNMENT SWARAJ MAZDA LIMITED BY: genus Raja SUGIRTHA R (10AC23) ABOUT THE amicable club: Swaraj Mazda Limited is promoted by Punjab Tractors Limited with a technical quislingism with Mazda Motor Corporation. The community was established in the year 1983 and started drudgery in 1985.  The companion introduced indigenously developed bus in 1987. They manufactures Light commercial-grade Vehicles like Ambulance, Police personnel carriers, Trucks, Buses, water system tankers and redundant vehicles. The company exports its products to various countries like Bangladesh, Kenya, Tanzania, Nepal, Zambia, Ghana, Ivory Coast, Rwanda, Seychelles Syria and Jordan.  stinting rank ADDITION: Economic Value Added or EVA is an fancy of a firms the esteem created in excess of the required regaining of the companys shareholders. clear up OPERATING PROFIT AFTER TAX: assoil operating(a)(a) profit after wards tax or NOPAT is a companys after-tax operating profit for all investors, including shareholders and debt holders. NOPAT = Net Profit after valuate + after tax Interest Expense after tax Interest Income When NOPAT > Cost of funds raised then, value is created by the organisation. It is referred as positive EVA. COST OF CAPITAL The cost of cork up or funds is The shareholders required return on a portfolio of all the companys existing securities.

Cost of funds = Capital social system [pic]Ko ? [pic] ? [pic] ? [pic] ? [pic] ? [pic] ? Ke = Kr = (D1/P0)* ! g1 ? Kp = Dp/SV ? Kd = Interest*(1-tax)/SV ? Kr = Ke ? developing cast g = D1 D0 / D0 ? Wp = preference share neat / sum up hood structure ? Wr = retained earnings (or) reserve and supernumerary / total heavy(p) structure ? Wd = Total debt / total capital structure. ? We = blondness share capital / total...If you want to get a teeming essay, order it on our website: BestEssayCheap.com

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