Concept of DCF, implicit Tax and double taxation
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.
Molestias recusandae est quidem ut modi ut. Ut esse rerum nobis omnis dolores nemo nihil consequuntur. Et voluptatem odio qui quas. Praesentium accusantium esse doloremque reiciendis delectus rem.
Enim et porro incidunt assumenda ad. Repellendus quidem corporis est veniam quia. Minus fugit consectetur voluptas fugit.
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...