EVA is the real economic profit which equals net profit after tax minus allassets cost including stock ownership and debts.
The figure is based on the profit after tax less the dividend receivable.
Corporate dividend policy mainly focus on how to distribute profit after tax.
Free cash flow equals the difference between net operating profit after tax and net investment.
Audi reported a rise of 30% in profit after tax for 2008, its best year for sales.
EVA( Economic Value Added) is the balance found by deducting the cost of capital from the net operating profit after tax( NOPAT).
For the sake of the fact that the profit after tax can be increased properly and legally by tax planning, more and more enterprises are choosing to apply the strategy.
This is the measure of output (taken as operating profit after tax and some other adjustments) less input (taken as the annual rental charge on the total capital employed, both debt and equity).
