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The after tax cash flow requires more computation than
the before tax cash flow evaluation? True False
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- QUESTION: A person wonders why the profit after tax is not the same as the cash flows from operating activities. Explain to a person two reasons why these two numbers are usually different and provide an example for each difference?EBITD is equivalent to profits after taxes. true or false?What is internal Rate of Return - Before Tax Cash Flow - BTIRR? Please provide example.
- Can the net cash flows be viewed as before-tax values or aftertax values for which tax effects have been recalculated?Using tax depreciation for tax purposes and straight-line depreciation for financial reporting, do deferred tax liabilities lead to true future cash flow?why are the operating taxes in the FCF analysis calculating without taking into account the tax shield on interest?
- 1. What is the effect of financial distress and taxation on gearing? A. Both constrain gearing B. The tax constrains gearing; financial distress pushes for increased gearing C. The tax pushes for increased gearing; financial distress constrains gearing D. Both push for increased gearingWhat is the compressed adjusted present value(APV) model, and how does this differ from theModigliani and Miller models? (Hint: think of thediscount rate on the tax shield. What is “compressed” about this model?)Under the principle of cashflow estimation, why it is important that cashflow should be measured on after-tax basis?
- Which of the following are true about Deferred Tax Liabilities? (check all that apply) In the future, tax rules require bigger expenses than GAAP Initially, tax rules require smaller expenses than GAAP In the future, tax rules require smaller expenses than GAAP They represent an obligation to make higher tax payments in the future Initially, tax rules require bigger expenses than GAAPwhy the tax expense show in the income statement are different from tax paid in cash flow statement explain possible reason with explanationDiscuss the difference between “tax evasion”, “tax avoidance”, and “tax planning”.
