FCFE

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June 2, 2024 at 9:21 am #706442
bear123
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Sir, I had a small doubt. In calculating FCFE.

We take “tax” on PBIT or after deducting interest? If we take tax on PBIT why dont we deduct interest from it?
June 2, 2024 at 8:57 pm #706478
John Moffat
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For the free cash flow to equity we calculate the tax on the profit after interest (because the interest is allowable for tax).
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