Why no interest deducted to arrive at PBT

AFM

The question clearly states that DEBT is 45% of 450cr and cost of debt is 9% why are we not taking it into account for computation PBT and if we need to take it into consideration will it grow 5% every year as per inflation please clarify sir Video Details ------------- Advanced Financial Management - AFM International Financial Management #9. Illustration # 2 Investment in Nepal

kabilan sam

CA Inter

★ 3K+

13-Apr-24 07:53

449

Answers (1)

Because we are computing enterprise value using FCFF which is value of full business including value of debt

Sriram Somayajula

Admin

13-Apr-24 08:26