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A firm has the following data. Calculate the Earnings Before Interest and Taxes (EBIT), Net Income, and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
A firm has the following data. Calculate the Earnings Before Interest and Taxes (EBIT), Net Income, and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
Data:
- Revenue: $150,000
- Cost of Goods Sold: $70,000
- Operating Expenses: $40,000
- Depreciation: $10,000
- Interest Expense: $5,000
- Tax Rate: 25%
Requirements:
- Calculate EBIT.
- Calculate Net Income.
- Calculate EBITDA.
- Analyze the firm’s profitability using the calculated values.
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