Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the firm, inc. has an after-tax cost of capital of

The Firm, Inc. has an after-tax cost of capital of 12%, and its tax rate...

50.1K

Verified Solution

Question

Accounting

image
image
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 firm's 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 firm's operating cash flow O a. $ 780,000 O b. $ 800,000 c.$805,000 O d. $825,000

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