- CFA Exams
- Forums
- General Forum
- Topic: lvl 2 - reading 38, qn 3 & 4
| Author | Topic: lvl 2 - reading 38, qn 3 & 4 |
|---|---|
| leealan @2014-06-03 06:44:51 |
Hello everyone, anyone can help me to solve it? With reference to qn 3, why i cannot use the following method to get the 2009 real NOPLAT Equals: 2009 real EBIT = $598,840 Minus: Taxes (31.82%)* = ($190,551) Equals:2009 NOPLAT = $408,289 *can we get the real taxes by 35%/ 1.10? If cannot, how to compute the tax amount of $238,000 (nominal tax amount)? Regarding qn 4, why the calculation below is wrong In Nominal Term ENding PPE = $1660 +depreciation = $214 -Bgn PPE =($1500) Equals: = $374 why we must compute in real term, then only translate to nominal term? Anyone can me to solve my doubt? Thank you |
