To value a large publicly traded firm, if you use the effective tax rate instead of the marginal tax rate (which is often higher than the effective tax rate) all the way through your free cash flow projections (e.g., you use the effective tax rate to calculate NOPLAT in all future years), then you will most likely overstate the future free cash flows. Discuss?

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Using the effective tax rate instead of the marginal tax rate throughout free cash flow projections ... View the full answer