So tricky!!!! Change in tax rate

Wow, I was calculating FCFF using : NI + Dep + Int( 1 - tax rate) - FCINV - WCINV

They tell you to use a higher tax rate = 35%. I could not get the right answer and realized that the NI was incorrect because it used an older tax rate (not disclosed).


So the answer must use FCFF = (EBITDA - Dep - Int)(1 - tax rate) + Dep - FCINV - WCINV


That sounds quite unfair. Actually I doubt such a minute detail will be tested.

The mocks are filled with these tricky small details… I also highly doubt these nuances will be tested on the actual as vignettes will be more clear to what they are asking for.

so we hope! these type of instances have me sometimes overthinking questions when what they are asking is more general, and overthinking gets you into trouble.