Determine the depreciation tax shield


Consider the following income statement:

Sales             $ 839,408      

Costs             546,112      

Depreciation   124,200      

Taxes              35 %  

(a) Calculate the EBIT.

(b) Calculate the net income.

(c) Calculate the OCF.

(d) What is the depreciation tax shield?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Determine the depreciation tax shield
Reference No:- TGS0549913

Expected delivery within 24 Hours