MSV 2.70% 36.0¢ mitchell services limited

Ann: Capital management update, page-11

  1. 1,178 Posts.
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    well, not necessary company can buy new business or equipment at that time and increase depreciation amount and still pays no tax ! see that is the beauty of this equipment business that they decides when they need to increase depreciation amount to avoid tax. obviously, down side of this is that if they using debt to buy equipment at higher rates then it cost you but may not be as much as paying tax at 30% !
 
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