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 follow was established in the year 1983 and started drudgery in 1985.  The participation introduced indigenously developed bus in 1987. They manufactures Light technical Vehicles like Ambulance, Police personnel carriers, Trucks, Buses, water system tankers and circumscribed vehicles. The company exports its products to various countries like Bangladesh, Kenya, Tanzania, Nepal, Zambia, Ghana, Ivory Coast, Rwanda, Seychelles Syria and Jordan.  stinting note value 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. engagement OPERATING PROFIT AFTER TAX: assoil run profit afterwards measu re or NOPAT is a companys after-tax in operation(p) profit for all investors, including shareholders and debt holders. NOPAT = Net Profit after tax + 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 ? exploitation cast g = D1 D0 / D0 ? Wp = preference share neat / original hood structure ? Wr = retained earnings (or) reserve and lavishness / total heavy(p) structure ? Wd = Total debt / total capital structure. ? We = blondness share capital / total...If you want to get a encompassing essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay