=2/Use the figures provided in Section 1 (Chapters 4 and 9) and calculate the EVA and the

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=2/Use the figures provided in Section 1 (Chapters 4 and 9) and calculate the EVA and the MVA of Indesit in 2013. The weighted average cost of capital of Indesit is 8.7% and it has a market capitalisation of €1034m. Suppose the tax rate is 40%. Why then, as the EVA of Indesit was negative, is its market value of equity up in 2013?

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Corporate Finance Theory And Practice

ISBN: 9781118849330

4th Edition

Authors: Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi

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