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Ken Garrett.
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winnielai119
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The answer showed “Lost tax relief on interest” is $53M, may I know how to calculate it?
Thanks.
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.
winnielai119
Ken GarrettViewing 2 posts - 1 through 2 (of 2 total)
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