Increase in Investment

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June 8, 2017 at 7:11 am #391699
huiwenn
Member
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Hi there, I am confused on the incremental working capital should minus off before or after applying tax rate under M&A topic.

Eg : Question Anatra Co (Sept/Dec 2015) vs Nante Co ( June 2012)

their incremental working capital placed differently which arise different tax expenses.
June 8, 2017 at 7:56 am #391721
John Moffat
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- Topics: 57
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Working capital has no effect on the tax.

In both of these questions the tax has been calculated on the cash flows before the extra investment required.
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