Interest is already deducted from operating profit to calculate tax. Then why again interest is deducted from operating profit to find FIFE.
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Kodiak co dec 09
8y ago#1They are two separate things.
In the workings, tax is calculated as always on the after-tax profits.
When arriving at the free cash flow to equity we subtract the tax as one cash flow, and subtract the interest as another cash flow.
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