R41 EOC #3 (Valuation in Emerging Markets)

CFA Level II
#1

Hi everyone, I was wondering if someone could explain to me how to arrive at the Ruppee cost of Taxes in EOC #3. I understand that you divide by the inflation rate to get back to the nominal cost, but I don’t see where the 238,000 is coming from. Any help is greatly appreciated. Hope your studies are going better than mine. Brainwasher

#2

It is given in Exhibit 4 under Nominal Forecasts.T Otherwise you can solve for it by multiplying the EBIT of 680 with the tax rate (35%). EBIT*T = 680*0.35= 238

#3

Thanks Perimel. Hopefully my attention to detail is much better on the exam.