Compute cash flow in the given problem

Assignment Help Finance Basics
Reference no: EM131788405

Question: Assume a firm has earnings before depreciation and taxes of $400,000 and depreciation of $100,000.

a. If the firm is in a 35 percent tax bracket, compute its cash flow.

b. If it is in a 20 percent tax bracket, compute its cash flow.

Reference no: EM131788405

Questions Cloud

What is the modified internal rate of return : What is the modified internal rate of return? An approximation from Appendix B is adequate for the final answer. (You do not need to interpolate.)
Find the percent of the saturday deliveries : Find the percent of the Saturday deliveries that exceeded 30 minutes that would result in a free order
Create waterways statements for division using condensed : Using the information provided, recreate Waterways' statements for this division using condensed, three-year comparative income statements.
How large a cash flow benefit did the depreciation provide : Assume a firm has earnings before depreciation and taxes of $500,000 and no depreciation. It is in a 40 percent tax bracket.
Compute cash flow in the given problem : Assume a firm has earnings before depreciation and taxes of $400,000 and depreciation of $100,000.
What will the selling price be galleys marketing team expect : What will the selling price be if Galley's marketing team expects to set the price at 23% markup on the full life-cycle cost?
Annotated bibliography on child pornography : Prepare Annotated Bibliography on child pornography - Evaluate and characterize risk factors in juveniles
Does python use strings under the cover for their numbers : Write few lines of code that outputs a natural phenomenon in python and Java, question: Does python use strings under the cover for their numbers
Two-dimensional array elements : Derive a general address translation formula for t[i] [j], where t is a two-dimensional array whose elements require w bytes of memory for storage.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the basis at the initiation of the hedge

1. What is the dollar gain or loss to the bank from the combined cash and futures market operations discussed above? 2. What is the basis at the initiation of the hedge? 3. What is the basis at the termination of the hedge?

  Interest charge on the margin loan

One year from now you expect to sell the stock for $140. The interest charge on the margin loan will be 9%. What percentage of rate of return do you expect to earn on your investment?

  Risk are present in the american economy

Several types of risk are present in the American economy. For each of the following, identify the type of risk that is present. Explain your answer.

  The difference between ebit

The difference between EBIT and taxable income must be interest expense

  What is the volatility of a portfolio consists of an equal

What is the volatility (standard deviation) of a portfolio that consists of an equal investment in 25 type S firms? What is the volatility (standarddeviation) of a portfolio that consists of an equal investment in 25 type I firms?

  Assume that the yield to maturity remains constant for the

a bond has a 1000 par value 10 years to maturity a 7 annual coupon and sells for 985.a what is its yield to maturity?b

  Which method of inventory valuation

Which method of inventory valuation (Specific Unit Cost, Weight Average, FIFO, LIFO) comes closest to matching current cost and current revenue? Why?

  Calculate the present value of the income stream

The appropriate discount rate is 4% for each of the first 3 years and 5% for each of the later years. Thus, a cash flow accruing in Year 6 should be discounted at 5% for some years and 4% in other years. All payments occur at year-end. Calculat..

  Contributions to climate change

Discuss two specific ways in which you could (or will) reduce your contributions to climate change explaining how these changes could (or will) help.

  What is the company target debt-equity ratio

A company has a weighted average cost of capital of 9.5 %. The company's cost of equity is 15.5% , and its pre-tax cost of debt it is 8.5 percent.

  Find the net cost of the spectrometer that is find the

you have been asked by the president of your company to evaluate the proposed acquisition of a new spectrometer for the

  What is the promised yield on this bond

A zero-coupon bond that matures in 15 years is currently selling for $209 per $1,000 par value. What is the promised yield on this bond?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd