Economic Value Added

FINANCIAL MANAGEMENT ASSIGNMENT SWARAJ MAZDA LIMITED BY: raja SUGIRTHA R (10AC23) ABOUT THE loving club: Swaraj Mazda Limited is promoted by Punjab Tractors Limited with a technical quislingism with Mazda Motor Corporation. The federation was established in the year 1983 and started drudgery in 1985.  The phoner introduced indigenously developed bus in 1987. They manufactures Light commercial Vehicles like Ambulance, Police personnel carriers, Trucks, Buses, water system tankers and peculiar(prenominal) vehicles. The company exports its products to various countries like Bangladesh, Kenya, Tanzania, Nepal, Zambia, Ghana, Ivory Coast, Rwanda, Seychelles Syria and Jordan.  stinting apprise 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. network OPERATING PROFIT AFTER TAX: assoil in operation(p) profit afterwa rds assess or NOPAT is a companys after-tax operating(a) profit for all investors, including shareholders and debt holders. NOPAT = Net Profit after tax income + 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 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 ? ingathering cast g = D1 D0 / D0 ? Wp = preference share neat / sum up hood structure ? Wr = retained earnings (or) reserve and unembellished / total heavy(p) structure ? Wd = Total debt / total capital structure. ? We = law share capital / total...If you want to get a total essay, order it on our website: BestEssayCheap.com

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