Question: Laiho Industries reported the following information in its yearly report:
Net income = $7.0 million.
NOPAT = $60 million.
EBITDA = $120 million.
Net profit margin = 5.0 percent.
Laiho has a depreciation expense, but no amortization expense. Laiho has USD 300 million in operating capital, its after-tax cost of capital is ten percent, and the firm’s tax rate is 40 percent. Determine Laiho’s depreciation expense?
[A] $53.0 million
[B] $60.0 million
[C] $77.1 million
[D] $20.0 million
[E] $30.0 million