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(c) Last year RR Corporation had RM7.3million in operating income (EBIT). Its depreciation expense was RM1.5million, its interest expense was RM1.8million, and its corporate tax
(c) Last year RR Corporation had RM7.3million in operating income (EBIT). Its depreciation expense was RM1.5million, its interest expense was RM1.8million, and its corporate tax rate was 40%. At year-end, it had RM 16.5 million in current assets, RM3.2million in accounts payable, RM1.9million in accruals, RM2.5million in notes payable, and RM16.1million in net plant and equipment. RR uses only 4 BBF302/05 debt and common equity to fund its operations. RR has no preferred stock on its balance sheet and other current liabilities. Assume that Rattner's only noncash item was depreciation. Calculate; (0) The company's net income. (3 marks) () Net operating working capital (NOWC) (5 marks) (ii) Networking capital (NWC)
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