Suppose a firm has earnings before interest taxes, Financial Management

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Suppose a firm has earnings before interest taxes

Suppose a firm has earnings before interest, Taxes depreciation, and Amortization of $10 Million. They are in the 40% tax bracket.

They pay interest of $2 Million per year, and have net income of $1 Million. What is their charge for Depreciation and Amortization?

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Financial Management: Suppose a firm has earnings before interest taxes

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