NOPAT= net income + NNE

OR

NOPAT = NOPBT - (provision tax expense + non operatingtax expense x tax rate)

Direct Computation of Nonoperating Return a. Compute net nonoperating expense (NNE) and net operating profit after tax (NOPAT). Assume a tax rate of 22%. b. Compute net nonoperating obligations (NNO). c. Compute financial leverage (FLEV). d. Compute NNEP and Spread. e. Compute the noncontrolling interest ratio ( NCl ratio). f. Confirm the relation: ROE=[RNOA+(FLEV Spread) ]NCI ratio. ROE may be different due to rounding Direct Computation of Nonoperating Return a. Compute net nonoperating expense (NNE) and net operating profit after tax (NOPAT). Assume a tax rate of 22%. b. Compute net nonoperating obligations (NNO). c. Compute financial leverage (FLEV). d. Compute NNEP and Spread. e. Compute the noncontrolling interest ratio ( NCl ratio). f. Confirm the relation: ROE=[RNOA+(FLEV Spread) ]NCI ratio. ROE may be different due to rounding