Hi,
Reading through Rosenbaum's book on Investment Banking I noticed that they they found EBIAT as EBIT * (1-t) to arrive at FCF. Wouldn't this overstate the taxes paid as it's before interest? I realize there's a tax shield, which WACC accounts for, but during an interview I was once told to arrive to FCF by taking EBT * (1-t) and then adding back interest.
Wouldn't you be double counting the tax shield, then? Also interested.
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