Company B has an EBIT of $2.4 million. Total capital is $50 million and the capital structure
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Company B has an EBIT of $2.4 million. Total capital is $50 million and the capital structure is comprised of 40% debt and 60% equity. If the company's tax rate is 30% and the company's cost of debt is 4.5%, what is company B's net income?
Company C has an EBIT of $4.8 million, a cost of debt of 3.5% on a debt of $40 million, and a tax rate of 21%. If depreciation is $600,000, cost of goods sold is $3.1 million, capital expenditures are $1.1 million, and the change in NWC is $0, what is the cash flow? free cash from company C?
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
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