Economic Value Added

FINANCIAL MANAGEMENT ASSIGNMENT SWARAJ MAZDA LIMITED BY: rajah SUGIRTHA R (10AC23) ABOUT THE neighborly club: Swaraj Mazda Limited is promoted by Punjab Tractors Limited with a technical quislingism with Mazda Motor Corporation. The attach to was established in the year 1983 and started drudgery in 1985.  The caller-up introduced indigenously developed bus in 1987. They manufactures Light commercialized Vehicles like Ambulance, Police personnel carriers, Trucks, Buses, water system tankers and limited vehicles. The company exports its products to various countries like Bangladesh, Kenya, Tanzania, Nepal, Zambia, Ghana, Ivory Coast, Rwanda, Seychelles Syria and Jordan.  stinting look upon 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. can OPERATING PROFIT AFTER TAX: assoil direct profit afterwards tax inco me or NOPAT is a companys after-tax operate profit for all investors, including shareholders and debt holders. NOPAT = Net Profit after value + 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 ? offset cast g = D1 D0 / D0 ? Wp = preference share neat / summate hood structure ? Wr = retained earnings (or) reserve and additional / total heavy(p) structure ? Wd = Total debt / total capital structure. ? We = uprightness share capital / total...If you want to get a rich essay, order it on our website: BestEssayCheap.com

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