Valuation in emerging markets someone, problem, reading, emerging, 303

mkytz15

Equity CFA book , Valuation in emerging markets, reading 41 problem 3, pg 303
I am not sure, how they got 2009 real taxes= 238,000/1.10.

Would someone please let me know?

Thanks,

RepoToronto

taxes paid are calculated from nominal earnings. So you must calculate nominal ebit, then nominal tax and then index that nominal tax value down with an inflation index.



Edited 1 time(s). Last edit at Saturday, January 29, 2011 at 09:29PM by Andrew3032.

President1988

Also reading this section ATM and had a question.

On page 278, how is investment in net working capital of 37 calculated?

Thanks-