Calculation of NOPLAT

[mwvt9]

Schweser has NOPLAT calculated two different ways as far as I can tell.
In reading 35 NOPLAT= NI+[(interest expense-interest income)(1-T)]+/- change in deferred taxes
In reading 41 they have NOPLAT=NI+after tax interest expense *
*they do say that NOPLAT is essentially equal to the above forumla
What gives?
At first glance it appears that I could study reading 43 from now until test day and still not understand it.

 

[mar350]

It looks like they’re just trying to relate NOPLAT to the reading with the second forumla. The first formula is the actual equation which give the breakdown of how the after tax interest and expense are factored in (net after tax). It also shows how deferred taxes can affect NOPLAT (if there are any).
Hope this helps.

 

[maratikus]

easy formula NOPLAT = EBIT*(1-tax)

 

[mwvt9]

I am aware of that one. I just need to understand the various ways to get to it because you don’t know what information they will give you. If you have a full IS then I will use that one ^.