AuthorTopic: lvl 2 - reading 38, qn 3 & 4
leealan
@2014-06-03 06:44:51
Hello everyone,

anyone can help me to solve it?

With reference to qn 3, why i cannot use the following method to get the 2009 real NOPLAT

Equals: 2009 real EBIT = $598,840
Minus: Taxes (31.82%)* = ($190,551)
Equals:2009 NOPLAT = $408,289

*can we get the real taxes by 35%/ 1.10? If cannot, how to compute the tax amount of $238,000 (nominal tax amount)?

Regarding qn 4, why the calculation below is wrong

In Nominal Term
ENding PPE = $1660
+depreciation = $214
-Bgn PPE =($1500)
Equals: = $374

why we must compute in real term, then only translate to nominal term?

Anyone can me to solve my doubt? Thank you

CFA Discussion Topic: lvl 2 - reading 38, qn 3 & 4

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