Assume a business, whose tax rate is at 35% has a revenue stream of of $70,000, total
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Assume a business, whose tax rate is at 35% has a revenue stream of of $70,000, total operating costs excluding depreciation, which means the cost of goods sold is $50,620, depreciation is $5,620, and its interest expense on outstanding loans is $2,800.
i. What is the firm's EBIT after the computation of the data given here?
ii. What is the business's EBT (earnings before taxes).
iii. What is the Free cash flow from assets?
iv. Briefly explain your derived numbers in i - iii above.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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