Do expenses (e.g. pension expenses) have an effect on the enterprise value?
Going through the 3 statements, I assume that expenses (e.g. pension expenses) have no effect on the PA.
Example: Expense of 100 (tax 30%) -> reduce net income by 70 -> CF is also reduced by 70.
That means the equity decreases by 70 and the cash balance on the assets side decreases by 70.
In conclusion that means for the EV-EqV-Bridge: Equity decreases by 70 but at the same time you deduct 70 cash LESS in the bridge. The change in the bridge is therefore 0.
Is that right?
Soluta aspernatur ratione at reiciendis qui autem. Officia maxime eum libero impedit minus ducimus non accusamus. Ullam sed ex sunt et aut. Sit maxime voluptate exercitationem voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...