The additional guidance metrics for the 2020 fiscal year are: General corporate expenses in a range of $160M-$170M in constant currency terms; Net interest costs
in a range of $230M-$250M in constant currency terms; and Adjusted effective tax rate range of 21%-23%.
The company said that net interest costs
of Rs 1,360 crore for the quarter have risen from Rs 492 crore in the yearago period primarily on account of higher spectrum related interest cost in India.
during the third quarter, helped by a big reduction in the LIFO charge, lower net interest costs
and a reduced effective tax rate.
Yell stated that the programme has delivered an exceptional pre-tax profit and a pre-tax reduction in net debt of GBP254.2m for the financial year ended 31 March 2012 and net interest costs
will be reduced by close to GBP20m per annum.
This increase in aggregate demand has shifted about 30% of issuance in 2010 from tax-exempt to taxable, lowering net interest costs
for municipal borrowers.
The American Recovery and Reinvestment Act of 2009 gives issuers the opportunity to access a new class of buyers by issuing Build America Bonds (BABs), possibly paying less in net interest costs
than with traditional tax-exempt bonds.
Empirical results comparing full and nondisclosure states suggest that debt issuers in full disclosure states save about 14 basis points on their net interest costs
, compared to issuers in nondisclosure states.
Net interest costs
in the period amounted to $1.6 million (versus $0.8 million in Q1 2008 and $1.3 million in Q4 2008), as average borrowings increased.CASHFLOW AND BORROWINGSUS$ Millions Q1 2009 Q1 2008Net operating cashflow (33.2) 6.6Investing activities (3.6) 1.2Financing activities 28.2 (10.0)Net increase/(decrease) in cash & cash equivalents (8.6) (2.2)Despite the improvement in net income referred to above, net operating cashflow declined compared to the same period last year as working capital increased substantially, reflecting both the higher level of new build activity and delayed receipts from certain customers.
They are required to pay pounds 19m in net interest costs
, but that is dealt with comfortably by revenues (match-day revenue doubled to pounds 91m in 2006/07 alone) generated by the move to the Emirates Stadium.
Net interest costs
climbed 44.6% to $234.6 million, giving the company a 38.7% increase in pretax income to $2.6 billion.
Growing debt and net interest costs
are a result of persistent fiscal imbalances, which, if left unchecked, threaten to crowd out spending for other national priorities.