Calculating charge for depreciation and amortization
Pearson Brothers recently reported an EBITDA of $7.5 million and net income of $1.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?
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If the Federal reserve has set the risk-free interest rate at 8 percent, what is the proper current price of this investment?
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