Question
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
please show work for help in the future
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