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Assume a corporation has earnings before amortization and taxes (EBAT) of $100,000 and amortization of $10,000, and it has a 34 percent tax rate. a.

Assume a corporation has earnings before amortization and taxes (EBAT) of $100,000 and amortization of $10,000, and it has a 34 percent tax rate.

a. Compute its cash flow.

Cash flow $

b. Compute the difference in cash flow, If there was $50,000 in amortization.

Difference in cash flow $

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