Relationship between Embedded Value and Profit After Tax
Introduction
8.1.In this chapter, we look at the factors affecting the embedded value and then explore the relationship between the embedded value and profit after tax (PAT) in the Revenue Account by taking a high-level view. We also try to calculate the growth rate in the PAT that matches the embedded value. Next, we look at the change in the embedded value from one year to the next and also look at parameters that help to measure this change.
What are the Factors Affecting Embedded Value?
8.2.Let us start from the embedded value and then try and analyze the factors affecting it. The embedded values of the three companies are shown in Table 8.1.
Table 8.1 Embedded Values of ...
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