CFA Level II Corporate Issuers Learning Module 4 Corporate Restructuring

CFA Level II Corporate Finance
#1

This question is in respect of CFA Level II Corporate Issuers Learning Module 4 Corporate Restructuring Example 11 Q4 on page 198.

For the pro forma post transaction income statement for Opone SA, how was the income tax expense of BRL3526 derived? Thanks!

#2

The question tells you the efffective tax rate = 10%

Add up all the numbers before the “Income tax expense” line in the income statemeent, this gives profits before tax and then multiply by 10%

PS Not everyone who asnswers questions has the CFA text you will widen your scope of people who can answer by including an exert from the question in your question.

#3

Noted, thanks MikeyF!