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HM has operating income (EBIT) of $750,000. The depreciation expense is $200,000. HM is 100% equity financed and faces a 40% tax rate. a.

HM has operating income (EBIT) of $750,000. The depreciation expense is $200,000. HM is 100% equity financed and faces a 40% tax rate. a. What is the company's net income? b. What is its net cash flow? B

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