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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
- 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.
- What is the company's depreciation expense?
- What is the company's interest expense?
- What is the company's free cash flow?
- What is the company's EVA?
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1 The companys depreciation expense can be calculated by subtracting EBITDA from NOPAT Depreciation ...Get Instant Access to Expert-Tailored Solutions
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