8 9 20 21 Consider the following income statement. Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield? Tax rate Complete the following analysis. Do not hard code values in your calculations. Sales Variable costs Depreciation EBT Taxes Net Income OCF 22% Depreciation tax shield. 713,500 49,730 87,400

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Consider the following income statement. Fill in the missing numbers and then calculate
the OCF. What is the depreciation tax shield?
Tax rate
Complete the following analysis. Do not hard code values in your calculations.
Sales
713,500
Variable costs
49,730
Depreciation
87,400
EBT
Taxes
Net Income
OCF
22%
Depreciation tax shield.
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Transcribed Image Text:3 4 5 as 6 7 8 9 10 11 12 13 14 15 16. 17 -287 18 19 20 21 Consider the following income statement. Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield? Tax rate Complete the following analysis. Do not hard code values in your calculations. Sales 713,500 Variable costs 49,730 Depreciation 87,400 EBT Taxes Net Income OCF 22% Depreciation tax shield. < Prev 4 of 5 Next >
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