Discuss the following statement: We dont want individual plant managers to get involved in the firms tax
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Discuss the following statement: “We don’t want individual plant managers to get involved in the firm’s tax position. So instead of telling them to discount after-tax cash flows at 10 percent, we just tell them to take the pretax cash flows and discount at 15 percent. With a 35 percent tax rate, 15 percent pretax generates approximately 10 percent after tax.”
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Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
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