Assume a corporation has earnings before depreciation and taxes of $82,000, depreciation of $45,000, and that it has a 25% combined tax bracket. What are the after-tax cash flows for the company?
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A: Calculation of Free Cash Flow using excel:
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Q: o
A: Earnings before interest and taxes = $100,000 Depreciation = $50,000 Tax bracket = 30%
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A: Cash flows after tax can be calculated through either of the following formulas:
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Assume a corporation has earnings before
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- Assume a corporation has earnings before depreciation and taxes of $100,000, depreciation of $50,000, and that it has a 30 percent tax bracket. Compute its cash flow using the format below. Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes @ 30% Earnings after taxes DepreciationAssume 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 0Your firm has the following income statement items: sales of $52,000,000; income tax of $1,880,000; operating expenses of $9,000,000; cost of goods sold of $36,000,000; depreciation and amortization of $1,500,000; and interest expense of $800,000. For purposes of determining free cash flow, what is the amount of the firm's after-tax cash flow from operations? O $750,000 O $3,600,000 O $1,008,000 O $5,120,00O
- 4. Assume a firm has earnings before depreciation and taxes of $400,000 and depreciation of $100,000. If the firm is in a 35 percent tax bracket, compute its cash flow. b. If it is in a 20 percent tax bracket, compute its cash flow. a.Using the financial statements mentioned above estimate the annual rate of interest paid by the corporation (cost of debt). Also, find the tax rate and capitalization ratio (proportions among equity and debt). Using these values that you have found estimate the annual weighted cost of capital (WACC) of the corporation.b) The Moore Corporation has operating income (EBIT) of $750,000. The company’s depreciation expense is $200,000. Moore is 100% equity financed, and it faces a 40% tax rate. What is the company’s net income? What is its net cash flow?
- Assume a corporation has earnings before depreciation and taxes of $126,000, depreciation of $42,000 and that it is in a 35 percent tax bracket. Compute its cash flow using the following format. (Input all answers as positive values.) C 500 Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes Earnings after taxes Depreciation Cash flow $ $ 0 0 0 Prev 1 of 9 *** MacBook Air Next >A debt-free firm has profit for the year of $128 400, taxes of $46 200 and depreciation of $21 300. What is the operating cash flow?Hammett, Inc., has sales of $74,058, costs of $24,908, depreciation expense of $6,308, and interest expense of $1,766. If the tax rate is 31 percent, what is the operating cash flow, or OCF?
- The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $12,000, respectively. What is the after-tax cashflow if the effective income tax rate is 23%? O a. $75,460 O b. $66,220 O c. $63,460 O d. $78,220 O e. $19,780The Moore Corporation has operating income (EBIT) of $750,000. The company’s depreciation expense is $200,000. Moore is 100% equity financed,and it faces a 40% tax rate. What is the company’s net income? What is itsnet cash flow?Jannah Company has sales of P1,000,000, cost of goods sold of P700,000, depreciation expenses of P250,000 and interest expenses of P55,000. If Jannah's tax rate is 34% and the income statement is complete, what is Jannah's operating cash flow? *