Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. last year, shea corporation had net operating prof

Last year, Shea Corporation had net operating profit after taxes (NOPAT) of $2,700 million. Its...

60.1K

Verified Solution

Question

Accounting

Last year, Shea Corporation had net operating profit after taxes (NOPAT) of $2,700 million. Its EBITDA was $4,800 million and net income amounted to $2,400 million. During the year, Shea made $1,000 million in net capital expenditures (remember that net capital expenditures equal gross capital expenditures less depreciation), and its net operating working capital increased by $100 million. Finally, Sheas finance staff has concluded that the firms total after-tax capital costs were $1,250 million (which is calculated by multiplying the companys WACC by its total invested capital), and its tax rate is 25%. Assume that the company does not have any amortization charges. Based upon this information, answer the following four questions.

What is the companys depreciation expense? (1 point)

What is the companys interest expense? (1 point)

What is the companys free cash flow? (1.5 points)

What is the companys EVA? (1.5 points)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students