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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › June 2008 Q2 (d)
Hi sir,
I just wonder the reason why market capitalisation includes the amount (annual after tax saving@ P/E ratio) , I think annual after tax saving is capital allowance @ tax rate, which should not @PER.
But the question actually tells you what the tax saving will be.
Is it PAT? I am confused.
If there is a tax saving given in the question, then the profit after tax must be higher than before (because there is less tax payable).
Thanks , I got it.
Great 🙂