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June 2008 Q2 (d)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › June 2008 Q2 (d)

  • This topic has 5 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • December 5, 2015 at 3:16 pm #287875
    yushanshan
    Member
    • Topics: 84
    • Replies: 70
    • ☆☆

    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.

    December 5, 2015 at 5:02 pm #287915
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    But the question actually tells you what the tax saving will be.

    December 5, 2015 at 5:04 pm #287918
    yushanshan
    Member
    • Topics: 84
    • Replies: 70
    • ☆☆

    Is it PAT? I am confused.

    December 5, 2015 at 5:19 pm #287935
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    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).

    December 5, 2015 at 5:21 pm #287938
    yushanshan
    Member
    • Topics: 84
    • Replies: 70
    • ☆☆

    Thanks , I got it.

    December 5, 2015 at 5:30 pm #287946
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    Great 🙂

  • Author
    Posts
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