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Makonis DEc-13

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

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November 12, 2015 at 1:39 pm #281959
dragon76
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- Topics: 50
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Dear John,
In this question, why calculate the FCFE, the answer ignore the impact of taxation, they do not minus 20% tax from the cash flow, pls. explain
November 13, 2015 at 6:46 am #282080
John Moffat
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The existing free cash flows must already be after tax.
With regard to the synergy, the answer assumes that the cash benefit is the net cash benefit (i.e. after any tax), which is sensible.
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