Series 79: Net Operating Profit After Taxes (NOPAT)

Taken from our FINRA Investment Banking Exam

Definition of the term Net Operating Profit After Taxes (NOPAT)...

a variation on EBIT used to assess what a company’s earnings would be without the benefit of the “tax shield” associated with debt financing.  Unlike EBIAT, NOPAT does not include non-operating income. It equals operating income minus taxes. Compare to EBIAT.

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Solomon Exam Prep Study Materials for the Series 79
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