Why don't we deduct tax from EBIT to derive FCFF?
So while deriving FCFF equation from EBIT, we replace Net income in the original equation with [EBIT - Int exp](1 - tax) because Net income is the result of EBIT - Int exp - Tax. But why isn’t tax subtracted in the equation above?
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There is the tax deduction. You are calculating EBT after tax.
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oh ok thanks a lot. That was concise and helpful