Consider the following statement: Sales ................................. $734,800 Costs .................................. 327,600 Depreciation ..................... 102,000 EBIT ..................................... ? Taxes

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Consider the following statement:

Sales ................................. $734,800

Costs .................................. 327,600

Depreciation ..................... 102,000

EBIT ..................................... ?

Taxes (35%) ........................ ?

Net income ........................ ?

Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield?

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Essentials Of Corporate Finance

ISBN: 9780073405131

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: Apr 24, 2012 07:26 AM

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Consider the following statement: Sales ................................. $734,800 Costs .................................. 327,600 Depreciation ..................... 102,000 EBIT ..................................... ? Taxes

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To find the OCF we need to complete the income statement as ...View the full answer

Essentials Of Corporate Finance

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