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1 . Last year, Vaughn Corporation had net operating profit after taxes ( NOPAT ) of $ 7 , 5 0 0 million. Its EBITDA

1. Last year, Vaughn Corporation had net operating profit after taxes (NOPAT) of $7,500 million. Its EBITDA was $11,800 million and net income amounted to $6,600 million. During the year, Vaughn made $4,500 million in net capital expenditures (remember that net capital expenditures equal gross capital expenditures less depreciation), and its net operating working capital increased by $1,200 million. Finally, Vaughns finance staff has concluded that the firms total after-tax capital costs were $6,500 million (which is calculated by multiplying the companys WACC by its total invested capital), and its tax rate is 25%. Assume that the company does not have any amortization charges. Based upon this information, answer the following five questions.
a. What is the companys operating income (EBIT)?
b. What is the companys depreciation expense?
c. What is the companys interest expense?
d. What is the companys free cash flow?
e. What is the companys EVA?

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