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Matthias Company had net operating profit after taxes (NOPAT) of $3,000 million. Its EBITDA was $4,800 million and net income amounted to $2,700 million. During

  1. Matthias Company had net operating profit after taxes (NOPAT) of $3,000 million.  Its EBITDA was $4,800 million and net income amounted to $2,700 million.  During the year, Matthias made $900 million in net capital expenditures (remember that net capital expenditures equal gross capital expenditures less depreciation), and its net operating working capital increased by $100 million.      Finally, Matthias's finance staff has concluded that the firm's total after-tax capital costs were $1,300 million (which is calculated by multiplying the company's 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 company's depreciation expense?
  2. What is the company's interest expense?  
  3. What is the company's free cash flow?  
  4. What is the company's EVA? 

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1 The companys depreciation expense can be calculated by subtracting EBITDA from NOPAT Depreciation ... blur-text-image

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