Here is the synopsis of our sample research paper on Calculating Economic Added Value (EVA); the case of Coca Cola and Pepsi Co.. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4 page paper uses a case study supplied by the student to calculate the economic added value (EVA) of Coca-Cola and Pepsi Co using projected figures. The paper shows how perform this calculation and demonstrates the calculations.
Page Count:
4 pages (~225 words per page)
File: TS14_TEevacoke.rtf
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Unformatted sample text from the term paper:
projection of Pepsi and Coca-Cola. Projections have been made regarding income, costs and profit for the years 2001 - 2003. However, EVA (economic value added) needs to be calculated.
To calculate this there are four stages. The first is to calculate the Net Operating Profit After Tax, known as NOPAT. The next is to calculate the Total Invested Capital
(TC). Thirdly we need to calculate the Weighted Average Cost of Capital. The last stage is to use these figures to calculate the EVA which is the NOPAT - WACC%
x TC. We will use the projections provided to calculate the EVA NOPAT The NOPAT is the net operating profit after taxes. As this is looking at cash flows we need
to add back in amortisation (not depreciation) and deduct only the cash amount paid in taxes. This gives us the following Coca-Cola Pepsi Co 2001 2002 2003
2001 2002 2003 Operating profit 5,399 6,132 6,633 4,385 4,885 5,369 Add back amortisation 295 295 295 236 295 295 Less cash taxes 1,738 1,957 2,131 1,142 1,245 1,504 NOPAT
3,956 4,470 4,797 3,479 3,935 4,160 Total Capital Invested. Next we need to calculate the Total Capital Invested. This means looking at all aspects of capital that are used.
With debt and equality, the best place to find this is on the liabilities and equity side of the balance sheet. This needs to be adjusted adding back any
loses, write offs or amortisation as these elements are also capital that is used. The figures given do not indicate any write offs of losses so these cannot be
included. Coca-Cola Pepsi Co 2001 2002 2003 2001 2002 2003 Total capital on balance sheet 21,434 21,901 22,311 22,757 25,716 25,511 Add amortisation 295 295 295 236
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