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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

  1. 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.

  1. What is the companys depreciation expense?
  2. What is the companys interest expense?
  3. What is the companys free cash flow?
  4. What is the companys EVA?

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