How much can the firm distribute to shareholders

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Your firm recently reported an EBIT of $900,000. The firm has $120,000 in interest expenses, and the firm is in the 25% tax bracket. The depreciation expenses total $300,000. The firm's 2019 net working capital was 900,000the firm's 2020 net working capital is $750,000. The firm's capital expenditures total 400,000. How much can the firm distribute to shareholders without harming operations?

Reference no: EM132594904

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