5. LSP. Co recently reported $11,750 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus- state income tax rate was 35%. During the year, the firm had expenditures on fixed assets and ne working capital that totaled $1,550. These expenditures were necessary for it to sustain operations and generate future sales and cash flow What was its free cash flow? *

5. LSP. Co recently reported $11,750 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus- state income tax rate was 35%. During the year, the firm had expenditures on fixed assets and ne working capital that totaled $1,550. These expenditures were necessary for it to sustain operations and generate future sales and cash flow What was its free cash flow? *

Name: 5. LSP. Co recently reported $11,750of sales, $5,500 of operating cos
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Description: 5. LSP. Co recently reported $11,750of sales, $5,500 of operating costsother than depreciation, and $1,250of depreciation. The company had$3,500 of bonds that carry a 6.25%interest rate, and its federal-plus-state income tax rate was 35%.During the

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 1P

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A Company recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's Operating Income (earnings before interest and taxes - EBIT)?
Easy Launch Box recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's Operating Income (earnings before interest and taxes - EBIT)?