I have two questions about DCF. The first is that most of the time when you do a DCF, you start with EBIT*(1-tax) and then +depreciation-capex+/- change in working capital to arrive at free cash flow to firm. And the tax is certainly no the tax expense in income statement.
However in the following extract from an analyst report, when doing a DCF analysis, the analyst start with EBIT and then minus the tax expense in the income statement instead of using the EBIT*(1-tax) formula, is he correct in doing this(you can look at the number in the tax expense in income statement and that is the same as the tax payment in DCF)?
Second questions is that usually the income from investment in associate is not included in the calculation of free cash flow to firm but investment in associate is treated as non core asset and subtract from the enterprise value. however in the following extract, the analyst include the income from investment in associate in the calculation of free cashflow and do not subtract the investment in associate from the enterprise value, , is he correct in doing this?
the income statement, balance sheet, cashflow statement and DCF is in below, appreciate any comment or help, thank you