Assume a firm has EBAT of $ 5 2 0 , 0 0 0 , and no amortization It is in a 3 5 percent tax bracket a Compute its cash flow Cash flow $ b Assume it has $ 5 2 0 , 0 0 0 in amortization Recompute its cash flow Cash flow $ c How large a cash flow benefit did the amortization provide Benefit in cash flo...

a To compute the cash flow of the firm without amortization we first need to calculate the taxes pai ...

Assume a firm has EBAT of $ 5 2 0 , 0 0 0 , and no

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Question:

Assume a firm has EBAT of $

520, 000,

and no amortization. It is in a

35

percent tax bracket.

.

Compute its cash flow.

Cash flow $

.

Assume it has $

520, 000

in amortization. Recompute its cash flow.

Cash flow $

.

How large a cash flow benefit did the amortization provide?

Benefit in cash flow $

Posted Date: May 11, 2024 05:04 AM

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Assume a firm has EBAT of $ 5 2 0 , 0 0 0 , and no

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a To compute the cash flow of the firm without amortization we first need to calculate the taxes pai... View the full answer

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