Economic Value Added

FINANCIAL MANAGEMENT ASSIGNMENT SWARAJ MAZDA LIMITED BY: raja SUGIRTHA R (10AC23) ABOUT THE social club: Swaraj Mazda Limited is promoted by Punjab Tractors Limited with a technical quislingism with Mazda Motor Corporation. The union was established in the year 1983 and started drudgery in 1985.  The troupe introduced indigenously developed bus in 1987. They manufactures Light commercialised Vehicles like Ambulance, Police personnel carriers, Trucks, Buses, water system tankers and especial(a) 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 on 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. meshwork OPERATING PROFIT AFTER TAX: assoil operate profit afterwards tax income or NOPAT is a companys after-tax in operation(p) profit for all investors, including shareholders and debt holders. NOPAT = Net Profit after tax revenue + 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 secure 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 ? branch cast g = D1 D0 / D0 ? Wp = preference share neat / tally hood structure ? Wr = retained earnings (or) reserve and superfluity / total heavy(p) structure ? Wd = Total debt / total capital structure. ? We = virtue share capital / total...If you want to get a right essay, order it on our website: BestEssayCheap.com

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