Why does the tax amount need to be adjusted when valuing a firm using the cash flow

from assets approach?

A$)$ The tax effect of the dividend payments must be eliminated.

B$)$ Only straight$-$line depreciation can be used when computing taxes for valuation

purposes.

C$)$ Taxes must be computed for valuation purposes based solely on the marginal tax

rate.

D$)$ The tax effect of the interest expense must be removed.

E$)$ The taxes must be computed for valuation purposes based on the average tax rate for

the past ten years.

Version $14$