which of the following is least likely to consider when determing if a company’s DTL should be treated as liabillty or equity? growth rate discount rate of liabilities
discount rate. Growth rate of company is very relevant because it determines if your fixed assets will continue to grow, in which case you’ll see the dtl grow and grow over time and never reverse. If you had negative growth, then the DTL would reverse.
discount rate of liabilities high growth rate of company will make your DTL as equity.
that’s what I put as well… but someone was saying otherwise… AAAHHHH it’s so irritating not having the f’ing answers.