Plz explain why in ques 3 we didn’t calculate FCFE using Net income
The answer is not coming when using Net income. Is it necessary to use EBITDA ?
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Hey Ridhi, it’s because of tax rate. While computing NI we need to consider a tax rate of 35% as indicated in the next page, check please.
Effective tax rate toh 32% hai na? 56.5/176.5