Net Operating Profit After Taxes (NOPAT) Is Defined as Which

question 90

Multiple Choice

Net operating profit after taxes (NOPAT) is defined as which of the following?

• A) net profit a firm earns before taxes, but after any financing costs
• B) net profit a firm earns after taxes, and after any financing cost
• C) net profit a firm earns after taxes, but before any financing costs
• D) net profit a firm earns before taxes, and before any financing cost

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Definitions:

Long Term Investments

Investments not expected to be sold or converted into cash within the next year, including stocks, bonds, and real estate.

Fair Value

The estimated price at which an asset or liability could be traded in a fair transaction between knowledgeable, willing parties under no force of sale.

Identifiable Net Assets Method

A technique used in business combinations that involves valuing a company based on the fair value of its identifiable net assets, excluding goodwill.

Fair Value Enterprise Method

A method of valuing a business by estimating the price at which the entire enterprise could be sold in a current market transaction.