How would you calculate tax rate in each of these cases?
How would you calculate tax rate in each of these cases? (each column represents 1 observation)
Year 1 2 3 4 5
Pretax income: 9.74M -69.89M 19.08M -7.39M -13.78M
Income Tax 1.35M 5.07M -1.57M -44.3M -243.31M
Consolidated Net Income 8.39M -74.96M 20.65M 36.92M 229.52M
Also, the EBITDA that we start with in a DCF, does it include or exclude earning from non-operating activities?
Thanks
EBIT is essentially operating income. While I'm just a student I am pretty sure that EBITDA does not include non-operating activities. I'll leave the tax rate q up to someone else.
Actually, EBITDA does include non-operating income, according to investopedia:
"Unlike EBITDA, OIBDA does not incorporate non-operating income. This is seen as an advantage for comparison purposes because non-operating income usually doesn't reoccur year after year and its separation from operating income ensures that all income reflects only the income earned from regular operations"
Anyone?
I'd say people usually use EBIT/Operating Income interchangeably, but in these cases if you'd want to be specific i think EBIT does include non-operating income.
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