Answer Key resit 2017 explained .pdf

Hey there. We need to adjust our EPS for the tax rates. Now if we take 7.5 as our starting point and have to pay 30% corporate taxes on it, that would be 2.25€. Meaning after we paid this kind of tax, we are left with 7.5-2,25=5,25€. You get to the same number if you directly multiply the original number (7.5) by the rate that you do not pay in taxes (70%). Thus, 7.5*0,7. You can do the same for the second tax rate then :)