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The Firm, Inc. has an after-tax cost of capital of 12%, and its tax rate is 40%. Last year the firm had S3,400,000 of earnings before interest and taxes on its $12,000,000 of sales, while depreciation expense was $800,000, and interest expense $200,000. The firm had capital employed of $5,000,000. What is the firms operating cash flow? a. $2.76 milion O b. $2.79 million O c. $2.84 million O d. $2.51 million O e. $2.60 million
The Firm has an after-tax cost of capital of 12%, and its tax rate is 50%. Last year the firm had$800,000 of earn ngs before interest and taxes on its $12,000,000 of sales, while depreciation expense was $400,000 $5,000,000. Find the firms operating cash flow O a. $ 780,000 O b. $ 800,000 c.$805,000 O d. $825,000
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sales 1 3,0cDo00 E 肛ㄒ ㄧㄧㄧㄧ-> 2,00, o叩 40% (EBT] 19,20,000 Add: mterest astes Cash floway Sales less: cost (ales → 1p00,000 E BT

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