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What is the FCF of the firm of year 2015? 2.a Cumberland Industries' most recent sales were $550,000,000; operating costs (excluding depreciation) were equal to

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What is the FCF of the firm of year 2015?

2.a Cumberland Industries' most recent sales were $550,000,000; operating costs (excluding depreciation) were equal to 80% of sales; net fixed assets were $70,000,000; depreciation amounted to 10% of net fixed assets, interest expenses were $8,000,000; the state-plus-federal corporate tax rate was 40% and Cumberland paid 25% of its net income out in dividends. Given this information, construct Cumberland's income statement. Also calculate total dividends and the addition to retained earnings Cumberland Industries: Income Statement (Thousands of dollars) Sales Operating costs excluding depreciation 2015 550,000$ 440,000$ 110,000 $ 7000 $ 103,000$ 8,000$ 95,000 $ 38,000 $ 57.000 S EBITDA Depreciation (Cumberland has no amortization charges) EBIT Interest expense EBT Taxes (40%) Net income 14,250 $ 42,750 $ Common dividends Addition to retained earning:s

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