According to Appendix A of Chapter 4, NOPAT is defined as:
A) revenues times 1 + tax rate)
B) revenues times 1 - tax rate)
C) EBITDA times 1 - tax rate)
D) EBIT times 1 - tax rate)
E) net income times 1 + tax rate)

Question

Quizplus · Accepted Answer

NOPAT (Net Operating Profit After Tax) is calculated as EBIT (Earnings Before Interest and Taxes) times (1 - tax rate), which reflects the operating profit after accounting for taxes.

According to Appendix a of Chapter 4, NOPAT Is Defined