Assume an all-equity firm has positive net earnings

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Reference no: EM131527020

Assume an all-equity firm has positive net earnings. The operating cash flow of this firm:

A) is equal to net income minus depreciation.

B) must be negative.

C) increases when the tax rate decreases.

D) ignores both depreciation and taxes.

E) is unaffected by the depreciation expense.

Reference no: EM131527020

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