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Assume a firm has earnings before depreciation and taxes of $510,000 and depreciation of $210,000. a. If it is in a 40 percent tax bracket,

Assume a firm has earnings before depreciation and taxes of $510,000 and depreciation of $210,000.

a. If it is in a 40 percent tax bracket, compute its cash flow.

b. If it is in a 25 percent tax bracket, compute its cash flow.

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