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An analyst has collected the following information regarding Gilligan Grocers: Earnings before interest and taxes (EBIT) = $700 million. Earnings before interest, taxes, depreciation and
An analyst has collected the following information regarding Gilligan Grocers: Earnings before interest and taxes (EBIT) = $700 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) = $850 million. Interest expense = $200 million. The corporate tax rate is 40 percent. Depreciation is the company's only non-cash expense or revenue. What is the company's net cash flow?
$850 million
$650 million
$570 million
$450 million
$500 million
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