Assume a firm has earnings before depreciation and taxes of


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.

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Finance Basics: Assume a firm has earnings before depreciation and taxes of
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