anonymous
  • anonymous
Hello, I have to value a company as of September 2008. The company reported that it went through a big restructuring in 2008 in its half-year report. I have read in your book that I should neglect this in forecasting my earnings if I assume this is a one time issue. However, it certainly does have an effect on 2008s actual cashflows (at least through tax effects). And I want to forecast the cashflows for the last quarter of 2008 also. So how do I deal with this? I can hardly neglect that the firm probably does not have to pay taxes for 2008 and that it can probably carry losses forward for a
Finance
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
katieb
  • katieb
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
few years and therefore reduce its tax rate. So I am not sure if I got something wrong but I would either include 1/4 of the restructuring charge in my cashflow forecast for the last quarter or just act like nothing happened (but adjust the tax rate). Probably the latter ... Thank you.

Looking for something else?

Not the answer you are looking for? Search for more explanations.