After-tax interest expense. Add this back to net income because:
Interest expense net of the related tax savings was [...] .
Answer
deducted in arriving at net income
Tags
#cashflow-statement
Question
After-tax interest expense. Add this back to net income because:
Interest expense net of the related tax savings was [...] .
Answer
?
Tags
#cashflow-statement
Question
After-tax interest expense. Add this back to net income because:
Interest expense net of the related tax savings was [...] .
Answer
deducted in arriving at net income
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Subject 3. Cash Flow Statement Analysis h charges. These represent depreciation and other non-cash charges minus non-cash gains. The add-back of net non-cash expenses is usually positive, because depreciation is a major part of total expenses for most companies. Int (1 - Tax rate): <span>After-tax interest expense. Add this back to net income because:
FCFF is the cash flow available for distribution among all suppliers of capital, including debt-holders, and Interest expense net of the related tax savings was deducted in arriving at net income.
The add-back is after-tax, because the discount rate in the FCFF model (WACC) is also calculated on an after-tax basis. FCInv: Investment in fixed capital. It equ
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