标题: NOPAT question [打印本页]

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作者: mkytz15    时间: 2011-7-13 16:28     标题: NOPAT question

Which one is correct?

NOPAT = EBIT (1-T)
or
NOPAT = EBIT - Taxes ==> (EBIT - Int) (1-T) + Int

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作者: brainsX    时间: 2011-7-13 16:28

do we take the interest tax shield out of NOPAT?

no, because it is net _operating_ profit after tax. it is not after tax cash flow, which has the interest tax shield.

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作者: economicz    时间: 2011-7-13 16:28

NOPAT = EBIT(1-t)

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作者: kkn006    时间: 2011-7-13 16:28

I believe first is correct with T=effective tax rate and 2nd with T=actual tax rate. Think curriculum uses effective tax rate, so I will go with 1.

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