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Brooks Sisters operating income (EBIT) is $300,000. The companys tax rate is 40 percent, and its depreciation expense is 50,000. The companys interest expense is
Brooks Sisters operating income (EBIT) is $300,000. The companys tax rate is 40 percent, and its depreciation expense is 50,000. The companys interest expense is $100,000. What is the companys net cash flow? (Assume that depreciation is the only non-cash item in the firms financial statements.)
a. $ 100,000 b. $ 170,000 c. $ 250,000 d. $ 350,000 e. None of the above
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