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Financial Management
Sir, while computing, earlier in the formula learning sessions, we had, either [EBIT (1-tax)]÷Capital employed. Or PAT÷ Capital employed... In both the formula, we didn't included the interest component in the numerator. We took whatever value is after tax available. But now in the second formula, we are adding back interest component? Why sir? [Video Time Stamp: 05:28] Video Details ------------- Financial Management Financial Analysis & Planning - Ratio Analysis #40. Illustration 19 [Q1(a) Nov 2019]
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Every formula will lead to some answer. But am afraid that we might not know which formula is expected at the examination. Till now I started enjoying ratio chapter as every question was smoothly solved...only first two videos of ratio analysis, needed to have reference to each any formula to solve question, there after It became very easy to solve questions because of your teaching, I am very grateful to your lessons sir. But the only concern is, new formula arises sudden concern, whether what we have learned earlier, did we made mistake in learning that formula. Like so..sir
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