Dear Folks,
I am new to accounting hence some of you may find my questions silly.
Can someone explain, why we calculate NOPAT = EBIT*(1-TaxRate), even when EBIT is negative.
I am doing this exercise for FCF calculations to find out burn rate.
Thanks in Advance,
CHeers
I am new to accounting hence some of you may find my questions silly.
Can someone explain, why we calculate NOPAT = EBIT*(1-TaxRate), even when EBIT is negative.
I am doing this exercise for FCF calculations to find out burn rate.
Thanks in Advance,
CHeers