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    Entrepreneurial Finance Study Set 5
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    Exam 4: Preparing and Using Financial Statements
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    Which of the Following Is the Correct Formula for Computing
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Which of the Following Is the Correct Formula for Computing

Question 22

Question 22

Multiple Choice

Which of the following is the correct formula for computing NOPAT?


A) NOPAT = Revenues × (1 + Tax Rate)
B) NOPAT = Revenues × (1 - Tax Rate)
C) NOPAT = EBITDA × (1 - Tax Rate)
D) NOPAT = EBIT × (1 - Tax Rate)

Correct Answer:

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