Effective tax rate is plugged into DCF to calculate nopat, fcf and proceeds to npv.
If the local tax rate is already within the concept of dcf, when the firm eventually adheres to that value range and sell, does that not mean that the firm has been double taxed?
What is the concept of this tax rate in computation on nopat if this is not the case?
Just moved from valuation to m&a - would appreciate all feedback on above. Thanks a lot.
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