Coke vs. Pepsi

Essay specific features

 

Issue:

Business

 

Written by:

Christina B

 

Date added:

January 27, 2015

 

Level:

University

 

Grade:

B

 

No of pages / words:

15 / 4161

 

Was viewed:

5628 times

 

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Essay content:

An increasing number of companies are relying heavily upon EVA to evaluate and reward managers from all functional departments. So what is EVA? EVA is a value-based financial performance measure based on Net Operating Profit after Taxes (NOPAT), the Invested Capital required to generate that income, and the Weighted Average Cost of Capital (WACC)...
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EVA represents the owners' earnings, as opposed to paper profits. The formula to measure EVA is: EVA = NOPAT - (Invested Capital x WACC). (1) EVA is a dollar amount. If the dollar amount is positive, the company has earned more net operating profit after taxes than the cost of the assets used to generate that profit, in other words, the company has created wealth...
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