Question
Newport Inc. reports EBIT to be $350,000 for 2003. The company has $150,000 in debt at a cost of 10% per year. Newport also has
Newport Inc. reports EBIT to be $350,000 for 2003. The company has $150,000 in debt at a cost of 10% per year. Newport also has $12,000 in depreciation expenses.
a, What is Newports net income for the year?
b, How much in taxes will Newport save by the depreciation deduction?
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
