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Compute its cash flow

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Reference no: EM133137799

Question - Assume a corporation has earnings before amortization and taxes (EBAT) of $100,000 and amortization of $10,000, and it has a 34 percent tax rate.

a. Compute its cash flow.

b. Compute the difference in cash flow, If there was $50,000 in amortization.

Reference no: EM133137799

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