And we were to add back the taxes and the interest.

Minus 500,000.

And you could guess what the next line is going to be, given that this says pre tax.

So you take the interest out.

If you have a 10 year loan, you'd put 10 here.

And the net income is 357,000.

If it's 30 , that means a 100 deduction will save you 30.

And now we are left with our we're getting close to where we need to get to pre tax income.

But just so you know what EBlT is, EBlT is just Earnings

It's dependent on how the operations were financed.

In this example that I did in the previous video, it was the pre tax return on asset.

Discount rate

The company's profit amounted to 250 million before tax.

I did in that last video it might be interesting to say, is that the pre tax or the post tax return on asset.

If you're referring to customs, yes.

And it actually should be an after tax return on that cash.

You just have to carry the lines over.

And it just depended on how the mathematics work out.

All the parts of the document in red are not intelligible.

They have no interest expense, because that's not the point of this video.

The IRS and the SEC and I don't know who else were investigating him for fraud.

So the actual effect ends up being 2,100.

The probability of reaching S prime given that we started state S and apply action A.

His salary is 250 thousand yen per month.

His salary is 250,000 yen per month.

Consumption tax is the just tax system for globalization.

Why don't we lower both lines?

And there will also be a progression on the other side of the coin.

The ruling party pushed its tax bill through.

Expenditures that are exactly twice the amount of the basic income will be the zero point for tax payments.

Tom leads the soccer team.

But the big learning from this is how dependent the present value of future payments are on your discount rate assumption.

This income tax saving from interest deduction, this is assuming that at that marginal tax rate, you can deduct the property tax and the interest on the debt.

The company announced a profit of 200 million after tax.

applause

And then, let's just say they're in the Caribbean and they don't have to pay taxes.

If I could get it for 90, that's a good deal for me.

If there is no more income tax and VAT is only added at the end of the value chain, then we have a VAT of around 100 .

To change this example even further.

Another way to kind of just talk about this is to get the present value of 110 a year from now, we discount the value by a discount rate.

No, it's taxexclusive

How did we get this?

larger this number is going to be.

The income tax rate increases in proportion as your salary rises.

The income tax rate increases in proportion to the salary increase.