[speedkills16]

BEC tomorrow, and the concept makes sense

However, in Becker questions for RI it is only giving before tax implications and I am just weary that if I get a question with the tax rate included if I should use after tax income vs. after tax require return.

I know that EVA uses after tax dollars and the WACC, but I cannot find anything either way for EI if we should use Net income before tax or after. Thanks

[h0wdyus]

Wiley uses Net Income. That means it is after tax, for RI. So read the question and decide what you want to use. All these measures have different flavors, the exam question should guide you that direction.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[speedkills16]

So you are saying, for RI, if I am given Sales, COGS, & a tax rate. To calculate “net income” instead of using GP?

[Uhartsoccer21]

This is a great question, took BEC yesterday and didn't rly think about it. However, one thing I did notice is… When there were different possible ways to set up an equation, like in this situation using Net income or IBT the answer choices didn't include an answer using both choices, it only included an answer for one of the choices so they weren't trying to trick you. This gave me lots of relief b/c I could narrow it down to one answer instead of having two answer choices using two different formulas.

A - 89 10/23/2014
R - 90 2/27/2014
F - 75 5/25/2014
B - 83 8/28/2014

[Author]

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