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Last year, Dorfman Company had net operating profit after taxes (NOPAT) of $450 million. Its EBITDA was $750 million and net income amounted to $300
- Last year, Dorfman Company had net operating profit after taxes (NOPAT) of $450 million. Its EBITDA was $750 million and net income amounted to $300 million. During the year, Dorfman made $150 million in net capital expenditures (remember that net capital expenditures equal gross capital expenditures less depreciation), and its net operating working capital increased by $18 million. Finally, Dorfmans finance staff has concluded that the firms total after-tax capital costs were $210 million (which is calculated by multiplying the companys WACC by its total invested capital), and its tax rate is 25%. Assume that the company does not have any amortization charges. Based upon this information, answer the following four questions.
- What is the companys depreciation expense?
- What is the companys interest expense?
- What is the companys free cash flow?
- What is the companys EVA?
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