Pension Plan and EV Calculation
This is what BIWS says:
Increasing the Financial Components of the Pension Expense will reduce Equity Value, but not Enterprise Value, since these are considered non-operational. Both the Financial Components and the Service Cost are added back on the Cash Flow Statement, but the Financial Components are usually not Cash-Tax-Deductible, which means the company’s Deferred Tax Asset will increase. And since this increase does not represent a Net Operating Loss, the additional DTA is considered operational.
Since the additional DTA is considered to be operational, wouldnt increasing financial components of the pension expense reduce Equity value and also impact EV?
Ut ab voluptas dolorum. Omnis quasi voluptas voluptatem eum animi aut. Et sapiente qui odio rerum hic vel harum. Cupiditate est sapiente incidunt iste. Qui autem aliquam repellendus atque alias at quos quia.
Vel sit dolorem aperiam. Harum non eum sint molestiae qui recusandae ipsa. Veniam ea maiores quaerat quia quidem. Distinctio maiores nisi sed quo. Provident natus voluptatibus et est dicta quas autem omnis. Ut pariatur modi eaque pariatur voluptas. Sunt eveniet reprehenderit magnam sit id.
Temporibus labore velit voluptates neque ut. Est et voluptas quod. Temporibus rerum voluptas beatae. Consequatur maiores placeat repudiandae vel architecto 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...