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4) During 2019, Magee Auto Supply Outlets had gross sales of $900,000, cost of goods sold of $300,000, and general and selling expenses of $400,000. The firm also had outstanding $200,000 of 10% coupon bonds with 12 years to maturity and $400,000 of 12% bonds with 25 years to maturity. Non-operating income was $0, depreciation was $10,000 and Magee paid dividends of $80,000 to its shareholders at the end of the year. The corporate tax rate was 21%. a) Compute Magee's free cash flow in 2019. You may assume that Magee did not have any incremental Capex or Net Operating Working Capital needs for 2019. b) Suppose Magee also had dividend income of $10,000 that it earned from the stock of Starks Corp, that it owns, and interest income of $7,500 from some T-bonds that it owns. What will be the new taxable income and new taxes paid in 2019? 6) The Harris Corporation had a taxable income of - $128,000 in 2019 and paid no tax. They will carry forward their tax loss from 2019 into 2020. Their 2020 taxable income was $320,000. a) What is the actual income in 2020 on which Harris will pay taxes? b) How much tax will Harris Corp. pay in 2020? 7) In 2020, Clarion Inc. generated NOPAT of $5,000,000 from operations. Their tax rate was 21%. In addition, they also had the following other revenues and expenses: Depreciation = 20% of EBITDA Interest expense on their own debt = $400,000; Interest income from T-Bonds = $150,000; Dividend income from Ring Corp. stock = $200,000; Net capital gains from sale of stock = - $100,200 a) Compute Clarion's EBIT from operations in 2020. b) Compute Clarion's EBITDA from operations in 2020. c) Compute Clarion's taxable income in 2020, including all sources of income, and tax paid