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For example, if post-tax outlays consist of CPLTD of $100M and noncash expenses are $50M, then the borrower can apply $50M of cash inflow
from operations directly against $50M of post-tax outlays without paying taxes on that $50M inflow, but the company must set aside $77M
(assuming a 35% income tax rate) to meet the remaining $50M of post-tax outlays. This company's pretax provision for post-tax outlays = $50M + $77M = $127M. <ref>{{Cite web |url=http://ebiz.rmahq.org/eBusPPRO/OnlineStore/ProductDetail/tabid/55/Productid/56403794/Default.aspx |title=Andrukonis, David (May, 2013). "Pitfalls in ConventionalEarnings-Based DSCR Measures — and a Recommended Alternative". The RMA Journal. |access-date=2013-05-23 |archive-url=https://archive.
==See also==
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