Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Makonis DEc-13

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
November 12, 2015 at 1:39 pm #281959
dragon76
Member
- Topics: 50
- Replies: 77
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
November 13, 2015 at 6:46 am #282080
John Moffat
Keymaster
- Topics: 57
- Replies: 51532
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.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.