question about Sept / Dec 19 Q1 EVA

This topic has 1 reply, 2 voices, and was last updated 4 years ago by Ken Garrett.

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July 15, 2021 at 4:26 am #627786
winnielai119
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The answer showed “Lost tax relief on interest” is $53M, may I know how to calculate it?

Thanks.
July 15, 2021 at 1:50 pm #627849
Ken Garrett
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Interest paid = 213.

Tax rate 25%

25% x 213 = 53.25, rounded to 53.

If no interest had been paid (to get NOPAT), profits would be 213 higher….but tax would be 53 higher too.
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