Tax review and tidy-up

There were a lot of parts to getting our tax calculations done. And this was a somewhat simplified example.

There's no doubt that getting tax right is one of the most challenging areas of modelling due to the multitude of different rules in different jurisdictions.

A quick review of our output sheet tells us that tax has taken $28m out of our dividends and nearly 2.5% off our IRR.

Now that we are done, we can do the usual section end checklist activities.

An additional step in our tidy up is to add the "Master Solve" check to the Check sheet - so that if the model is not solved, we'll get a visible alert in the header of all of our worksheets.

Now that we've completed the tax modelling, we're getting close to being able to answer the question we started with. How much premium would we be willing to pay to acquire a share of this company?

Download the model complete to this point:

To obtain the worked example file to accompany this chapter buy the financial modelling handbook.

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