Question
Suppose XYZ company had an additional $1.5 million depreciation expense in 2016. If XYZs tax rate on the pretax income is 40%, What would be
Suppose XYZ company had an additional $1.5 million depreciation expense in 2016. If XYZs tax rate on the pretax income is 40%, What would be the impact of this expenses on XYZs Cash at the end of the year?
| A. | Cash balance increase by $0.26 million
| |
| B. | Cash balance increase by $1 million
| |
| C. | Cash balance increase by $1.5 million
| |
| D. | Cash balance increase by $0.60 million |
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Global Edition
1292437154, 978-1292437156
