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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

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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 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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