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Problem ONE: A company $8,400,000 in operating income (EBIT) The company had a net depreciation expense of $4,500,000 interest expense of $2,350,000 its corporate tax

Problem ONE:

A company $8,400,000 in operating income (EBIT)

The company had a net depreciation expense of $4,500,000

interest expense of $2,350,000

its corporate tax rate was 40 percent.

The company has $7,250,000 in non-interesting-earning current assets

and $5,675,000 in non-interest-bearing current liabilities;

it has $11,080,000 in net plant and equipment

It estimates that it has an after-tax cost of capital of 4.7000%

Previous year Operating Capital (OC) was $11,500,000

Calculate the following

1.Net Income

2.Net Cash FLow

3.Net Operating Profits after taxes

4.Operating Cash Flow

5.Free Cash Flow

6.Economic Value Added

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