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Question 2 5 points Chapter 3 The Volvo Company is an established American multinational automaker that has its main headquarters in Detroit, USA. It was

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Question 2 5 points Chapter 3 The Volvo Company is an established American multinational automaker that has its main headquarters in Detroit, USA. It was founded by Henry Michigan and incorporated on June 16, 1919 and had ever since been selling automobiles and commercial vehicles under the Volvo brand to the world. The UAE has been one of Volvo's most loyal customers since the 1980's. You work as a financial analyst and have recently been placed onto an assignment with the Volvo Company. According to the most recent financial statements, the Volvo Company has reported a net loss of $1,800. The firm's earnings before interest, tax, depreciation & amortization are positive and amount to $9,000. The amount of debt outstanding that the company has borrowed from the HSBC bank at the 8% interest rate is $2,700. The applicable corporate tax rate used by the Volvo Company is 25%. In answering the questions below, show all the formulas used and calculations, along with the final answer. Calculate the amount of taxes that the Volvo Corporation owes to the taxation office. (1 point) Explain what this means for the company. a. b. Determine the level of the company's pre-tax profit. (1 point) C. Calculate the amount annual interest expense that the Volvo company owes to HSBC. (1 point) d. Estimate the level of the company's operating profit. (1 point) e. Calculate the level of the firm's depreciation and amortization expense. (1 point)

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