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What is the impact of an increase in deferred tax liabilities of $20m per year on unlevered FCFs? Adjust UFCF up by $20m in each
What is the impact of an increase in deferred tax liabilities of $20m per year on unlevered FCFs? Adjust UFCF up by $20m in each projected year. The terminal value (undiscounted) shouldn't be modified. Net debt should be increased by the projected cumulative Tax liability. Adjust UFCF down by $20m in each projected year. The terminal value and net debt do not need to be modified. Adjust UFCF down by $20m in each projected year. The terminal value (undiscounted) should be decreased by the projected cumulative Tax liability. Net debt shouldn't be modified. Adjust UFCF up by $20m in each projected year. The terminal value and net debt do not need to be modified. Adjust UFCF down by $20m in each projected year. The terminal value should not be changed. Net debt should be increased by the present value of DTLs
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
