Suppose a firm has the following information: Sales = $10 million; costs of goods sold (excluding depreciation)

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Suppose a firm has the following information: Sales = $10 million; costs of goods sold (excluding depreciation) = $5 million;

depreciation = $1.4 million; other operating expenses = $2 million;

interest expense = $1 million. If the tax rate is 25%, what is NOPAT, the net operating profit after taxes? ($1.2 million)

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Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

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