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What is the depreciation tax shield and calculate the ebit

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Reference no: EM132856508

Consider the following income statement:

Sales$ 456,200

Costs: 296,800

Depreciation: 67,500

Taxes: 23 %

Please answer following questions:

Question 1: Calculate the EBIT.

Question 2: Calculate the net income.

Question 3: Calculate the OCF.

Question 4: What is the depreciation tax shield?

Reference no: EM132856508

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