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Assume an all-equity firm has positive net earnings. The operating cash flow of this firm: is unaffected by the depreciation expense. ignores both depreciation and
Assume an all-equity firm has positive net earnings. The operating cash flow of this firm:
is unaffected by the depreciation expense.
ignores both depreciation and taxes.
is equal to net income minus depreciation.
increases when the tax rate decreases.
must be negative.
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