CFA Practice Question

There are 201 practice questions for this study session.

CFA Practice Question

Consider the following information:

  • Adjusted net operating profit after tax (NOPAT): $50 million.
  • Total capital: $300 million. There is no debt.
  • The cost of equity: 15%.

Calculate the EVA for the fiscal period.
Correct Answer: EVA = Net Operating Profit after Taxes (NOPAT) - Dollar Cost of Capital = NOPAT - (Cost of capital % ) x (Total Capital) = $50 million - 15% x $300 = $5 million.

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