Assume a corporation has earnings before depreciation and taxes of $145,000, depreciation of $35,000, and that it has a 30% combined tax bracket. What are the after-tax cash flows for the company? a) $112,000 b) $106,800 Oc) $116.600 d) $115,800

Assume a corporation has earnings before depreciation and taxes of $145,000, depreciation of $35,000, and that it has a 30% combined tax bracket. What are the after-tax cash flows for the company? a) $112,000 b) $106,800 Oc) $116.600 d) $115,800

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

Section: Chapter Questions

Problem 1PS

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Assume a corporation has earnings before depreciation and taxes of $145,000,
depreciation of $35,000, and that it has a 30% combined tax bracket. What are the
after-tax cash flows for the company?
a) $112,000
Ob) $106,800
c) $116,600
Od) $115,800
0

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