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Question 1 (10 points) Your firm recently reported an EBIT of $5,000,000. The firm has $1,120,000 in interest expenses, and the firm is in the

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Question 1 (10 points) Your firm recently reported an EBIT of $5,000,000. The firm has $1,120,000 in interest expenses, and the firm is in the 30% tax bracket. The firm's depreciation expenses total $850,000. The firm's 2019 net working capital was $900,000; the firm's 2020 net working capital is $1,950,000. The firm's capital expenditures total $700,000. How much can the firm distribute to shareholders without harming operations? $4,501,200 $4,000,000 $6,100,000 None of the above

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