00:01
So for part a here, we want to find the net financial expense after tax.
00:13
Well, that is going to be the net interest expense minus the tax shield on interest.
00:35
So this is going to be the $195, which is your net interest expense times.
00:43
1 minus the statutory tax rate, 0 .35, because 195 times 0 .35 is your tax shield.
00:53
So this then is 0 .65 times 195, which is 126 .75, and we round that then to 127.
01:05
And for b, your tax on operating income is going to be the operating income times your tax rate.
01:30
So this is 908 times 0 .35, which is 317.
01:42
8 which will round to 318.
01:46
Then operating income after tax is going to be your operating income minus the tax on operating income.
02:08
So that is 590...