If two companies have exact same PBIT but one of them has some debt finance, would they pay same of amount of tax?  Please demonstrate with Income Statement Extract. You can use numbers of your choice

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Q: 1. Income statement?

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A:

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A:

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A: option 1 is correct  πB = πA/(1 - t)   πB = Pretax target profit   πA=Post tax profit  t=Tax rate

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