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can you please explain why the interest is not included in this statement? because 60% is financed by debt and interest on short term government
can you please explain why the interest is not included in this statement? because 60% is financed by debt and interest on short term government bond is 4%, market rate of return is 8%, debt holders require 10% rate of return on their investment.
2. Operating Cash Flow Units Sold A Selling Price per unit = B Variable Cost per unit- = C Sales AX B Less: Variable Cost = AX C Gross Margin Less: Fixed Costs EBITDA Less: Depreciation EBIT Less: Tax at 40% Net Income Add: Depreciation Operating Cash Flows $ $ $ $ $ $ $ $ $ $ $ $ SA $ Year 1 to 10 5,000,000 30 20 150,000,000 100,000,000 50,000,000 10,000,000 40,000,000 2,500,000 37,500,000 15,000,000 22,500,000 2,500,000 25,000,000Step by Step Solution
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