NET OPERATION PROFIT AFTER TAXES Definition

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NET OPERATION PROFIT AFTER TAXES (NOPAT) is a profitability measure that omits the cost of debt financing (i.e. it omits interest payments, along with their associated tax break). NOPAT is primarily used in the calculation of EVA. It is calculated: NOPAT = operating income x (1 - Tax Rate).

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DEPTH OF MARKET is the number of shares of a security that can be bought or sold at the bid and ask prices near the inside market without causing a dramatic change in price.

S CORPORATION see SUBCHAPTER S.

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