
- UID
- 223379
- 帖子
- 277
- 主题
- 70
- 注册时间
- 2011-7-11
- 最后登录
- 2016-4-19
|
Removing Equity Income from BS effect
For a firm that reports equity income as non-operating income, removing equity income form the financial statements would most likely result in an increase in the tax burden term in the extended dupont decomposition of ROE.
Tax burden = NI/EBT
The decrease in NI form removing the Equity income will decrease the term (an apparently greater reduction in ROE due to taxes).
After the explanation above, I still don’t get it.
Can anyone plz clarify? |
|