Last year, Sharpe Radios had a net operating profit after-taxes (NOPAT) of $7.8 million. Its EBITDA was $15.5 million and net income amounted to $3.8 million. During the year, Sharpe Radios made $5.5 million in net capital expenditures (that is, capital expenditures net of depreciation). Finally, Sharpe Radios' finance staff has concluded that the firm's total after-tax capital costs were $5.9 million and its tax rate was 40 percent.



What is Sharpe Radios' depreciation and amortization expense?

Answer rating: 100% (QA)

SOLUTION To calculate Sharpe Radios depreciation and amortization expense we can use the following formula Depreciation and Amortization EBITDA NOPAT ... View the full answer