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Makonis DEc-13

Ddragon7610y ago
Dear John, In this question, why calculate the FCFE, the answer ignore the impact of taxation, they do not minus 20% tax from the cash flow, pls. explain
John MoffatJohn MoffatTutor10y ago#1
The existing free cash flows must already be after tax. With regard to the synergy, the answer assumes that the cash benefit is the net cash benefit (i.e. after any tax), which is sensible.
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