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Cole Furnaces had $4 million in operating income (EBIT). The company had a net depreciation expense of $1 million and an interest expense of $1
Cole Furnaces had \$4 million in operating income (EBIT). The company had a net depreciation expense of $1 million and an interest expense of $1 million; its combined federal and state corporate tax rate is 25%. The company has $14 million in operating current assets and $4 million in operating current liabilities; it has $15 million in net plant and equipment. Total net operating capital (net plant and equipment plus NOWC) in the previous year was \$24 million. a. Calculate the company's NOPAT (net operating profit after taxes). b. Calculate NOWC and total net operating capital for the current year. c. Calculate the company's FCF (free cash flow) for the year
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