Question
Assume a firm has EBAT of $670,000, and no amortization. It is in a 40 percent tax bracket. a. Compute its cash flow. Cash flow
Assume a firm has EBAT of $670,000, and no amortization. It is in a 40 percent tax bracket.
a. Compute its cash flow.
Cash flow $
b. Assume it has $670,000 in amortization. Recompute its cash flow.
Cash flow $
c. How large a cash flow benefit did the amortization provide?
Benefit in cash flow $
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Options Futures And Other Derivatives
Authors: John C. Hull
11th Edition
013693997X, 9780136939979
